A and B are partners sharing profits in the ratio of 2:1 and their Balance Sheet...
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A and B are partners sharing profits in the ratio of 2:1 and their Balance Sheet on 31.12.2014 was as follows: Liabilities Creditors Bills payable A's Loan Capitals: A B Reserve Fund Assets 20,000 Cash in Hand 5,000 Bills Receivable 10,000 Debtors Less: RBD Stock Machinery 30,000 1,500 150 2,500 28,500 21,850 10,000 15,000 10,000 3,000 63,000 63,000 They agree to sell the business to a limited company. The company is to take over the assets and liabilities as follows: Machinery at 78,000, Stock at 17,500, Debtors at 25,350, Bills receivable at * 2,500 and Goodwill at 7 3,000. The company agreed to take over Creditors at 19,500. The expenses of realization amounted to 150. The firm received 720,000 of the purchase price in ? 10 fully paid shares and the balance in cash. Prepare the necessary ledger accounts in the books of the firm. A and B are partners sharing profits in the ratio of 2:1 and their Balance Sheet on 31.12.2014 was as follows: Liabilities Creditors Bills payable A's Loan Capitals: A B Reserve Fund Assets 20,000 Cash in Hand 5,000 Bills Receivable 10,000 Debtors Less: RBD Stock Machinery 30,000 1,500 150 2,500 28,500 21,850 10,000 15,000 10,000 3,000 63,000 63,000 They agree to sell the business to a limited company. The company is to take over the assets and liabilities as follows: Machinery at 78,000, Stock at 17,500, Debtors at 25,350, Bills receivable at * 2,500 and Goodwill at 7 3,000. The company agreed to take over Creditors at 19,500. The expenses of realization amounted to 150. The firm received 720,000 of the purchase price in ? 10 fully paid shares and the balance in cash. Prepare the necessary ledger accounts in the books of the firm.
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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