a) A and B are in partnership and share profit and losses in the ratio 2:3.On...

 

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a) A and B are in partnership and share profit and losses in the ratio 2:3.On 31/12/22, the balance sheet of A and B partnership was as follows: Balance sheet as at 31/12/22 Building Motor vehicle Furniture Debtors Stock Bank Furniture Sh. 30,000 Stock 15,000 13,000 Building Motor vehicle 12,500 13,000 11,500 95,000 Capital A Capital B Creditors Sh. 40,000 30,000 On 1/1/23, they admitted C as their partner on the following conditions: i, C was to bring in a cheque of shs.35,000 as capital. ii. The profit sharing ratios would be 4:5:3 for A,B and C respectively. iii.It was agreed to revalue certain assets before admitting C as under, shs. 46,000 10,000 9,000 16,000 iv. Goodwill of shs. 18,000 was created before the admission of C. wwwwwww 25,000 95,000 Required: Make the appropriate ledger entries and then prepare the balance sheet as at 1/1/23. (8 Marks) b)State the importance of bank reconciliation exercise. (2 Marks) a) A and B are in partnership and share profit and losses in the ratio 2:3.On 31/12/22, the balance sheet of A and B partnership was as follows: Balance sheet as at 31/12/22 Building Motor vehicle Furniture Debtors Stock Bank Furniture Sh. 30,000 Stock 15,000 13,000 Building Motor vehicle 12,500 13,000 11,500 95,000 Capital A Capital B Creditors Sh. 40,000 30,000 On 1/1/23, they admitted C as their partner on the following conditions: i, C was to bring in a cheque of shs.35,000 as capital. ii. The profit sharing ratios would be 4:5:3 for A,B and C respectively. iii.It was agreed to revalue certain assets before admitting C as under, shs. 46,000 10,000 9,000 16,000 iv. Goodwill of shs. 18,000 was created before the admission of C. wwwwwww 25,000 95,000 Required: Make the appropriate ledger entries and then prepare the balance sheet as at 1/1/23. (8 Marks) b)State the importance of bank reconciliation exercise. (2 Marks)

Answer rating: 100% (QA)

a Ledger Entries and Balance Sheet as at 1123 Ledger Entries a Building Debit Building Revaluation Account Shs 16000 ... View the full answer