A and B are partners in a firm sharing profits and losses in the ratio of...

 

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A and B are partners in a firm sharing profits and losses in the ratio of 3:1. On 31" December 2020 they admitted C as a partner for % share in the future profits. C was to bring RO 60000 as his capital. The Following is the balance sheet of A and B on 31 December 2020. Liabilities RO Assets RO Capitals Account Premises 40,000 50,000 Plant and Machinery 80,000 Stock 10,000 Accounts receivables 70,000 Investments 70,000 B 30,000 General Reserve Accounts Payables 34,000 26,000 Cash 10,000 210,000 210,000 The other terms agreed upon were 1. Goodwill of the firm was valued at RO 24,000 2. Premises is valued at RO 65,000 and Plant and Machinery at RO 60,000 3. Provision for Doubtful debts was to be made for RO 600 4. Account payable for RO1200 was not likely to be paid Prepare ledger accounts and the statement of financial position after the Admission of C A and B are partners in a firm sharing profits and losses in the ratio of 3:1. On 31" December 2020 they admitted C as a partner for % share in the future profits. C was to bring RO 60000 as his capital. The Following is the balance sheet of A and B on 31 December 2020. Liabilities RO Assets RO Capitals Account Premises 40,000 50,000 Plant and Machinery 80,000 Stock 10,000 Accounts receivables 70,000 Investments 70,000 B 30,000 General Reserve Accounts Payables 34,000 26,000 Cash 10,000 210,000 210,000 The other terms agreed upon were 1. Goodwill of the firm was valued at RO 24,000 2. Premises is valued at RO 65,000 and Plant and Machinery at RO 60,000 3. Provision for Doubtful debts was to be made for RO 600 4. Account payable for RO1200 was not likely to be paid Prepare ledger accounts and the statement of financial position after the Admission of C

Answer rating: 100% (QA)

Solufion Ion the beoks of the firm REVALUATION ACCOU... View the full answer