A and B are in partnership sharing profits and losses as 2 :1. As from 1.10.2016, they
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A and B are in partnership sharing profits and losses as 2 :1. As from 1.10.2016, they take C as a partner who will have 1/6th share. As between A and B, they decide to share equally, C brings in ₹ 50,000 as capital and ₹ 4,000 as premium for Goodwill. Following is the Balance Sheet as on 30.9.2017:You are required to journalise the opening adjustments and draw up the Balance Sheet as on 30.9.2017.
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Capital - A Capital B Creditors Liabilities 62,500 Cash 37,500 Stock 50,000 Debtors Plant Investments Assets ₹ 7,000 50,000 30,000 25,000 38,000 1,50,000 1,50,000 The assets are revalued as: Stock 55,000; Plant 20,000; Investment 35,000; A provision for bad debts to be created against debtors @ 5%. It is further agreed that A alone is to be charged for any loss on revaluation. The profits after depreciating plant @ 5% p.a. for the year ended 30.9.2017 is 1,20,000 and the drawings of the partners are: A40,000; B40,000; C 10,000.
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Related Book For
Financial Accounting Volume II
ISBN: 9789387886230
4th Edition
Authors: Mohamed Hanif, Amitabha Mukherjee
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