A, B and C were partners in a firm sharing profits and losses according to their...
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A, B and C were partners in a firm sharing profits and losses according to their Capital. On 1¹ April 2020 their Balance Sheet was as follows: Balance Sheet of A, B and C (as on 1¹ April 2020) OMR OMR Cash Debtors Less: Provision Stock Machinery Buildings Creditors General Reserve Capitals: A B C On the above date B retired and following was agreed: (1) Buildings to be appreciated by _% (u) Provision for bad debts to be increased to 40,000 (2.000) 160,000 80,000 80,000 % on debtors 28,000 38,000 36,000 100,000 200.000 402.000 42,000 40,000 320,000 402.000 (iii) Machinery to be depreciated by (iv) Goodwill of the firm valued at OMR (v) % of the amount payable to 8 was paid in Cash and balance was transferred to her Loan Account Required: (a) You are required to show all the ledger accounts necessary to record the revaluation. (b) Draw up a balance sheet as at 1 April 2020 A, B and C were partners in a firm sharing profits and losses according to their Capital. On 1¹ April 2020 their Balance Sheet was as follows: Balance Sheet of A, B and C (as on 1¹ April 2020) OMR OMR Cash Debtors Less: Provision Stock Machinery Buildings Creditors General Reserve Capitals: A B C On the above date B retired and following was agreed: (1) Buildings to be appreciated by _% (u) Provision for bad debts to be increased to 40,000 (2.000) 160,000 80,000 80,000 % on debtors 28,000 38,000 36,000 100,000 200.000 402.000 42,000 40,000 320,000 402.000 (iii) Machinery to be depreciated by (iv) Goodwill of the firm valued at OMR (v) % of the amount payable to 8 was paid in Cash and balance was transferred to her Loan Account Required: (a) You are required to show all the ledger accounts necessary to record the revaluation. (b) Draw up a balance sheet as at 1 April 2020
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Answer rating: 100% (QA)
A Provision for bad debt 40000 X 7 2000 Machinery 100000 X 10 Partners capital Profit on revaluation ... View the full answer
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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