Assignment Topic

Question No:1

Mr.Salil and Mr. Suhail started a partnership business on 01.01.2019. The following details are taken from the partnership deed.

1. Each partner should contribute OMR 50000
2. Interest on drawings can be charged @ 6%
3. Interest on capital to be given to partners @ 5%
4. Mr. Salil will act as a managing partner and he will get a salary of OMR 500 per month.
5. Profits and losses should be shared equally

The trial balance for the year ended 31^st Dec.2019 were as follows:

Particulars	OMR	OMR
Sales		100,000
Purchases	60000
Wages	2000
Salary to employees	6000
Other administrative expenses	2000
Land and building	30000
Furniture	5000
Sundry debtors	15000
Sundry creditors		20000
Bank loan		15000
Outstanding expenses		4000
Interest paid	1000
Investment	10000
Cash at bank	8000
Total	139000	139000

On 1.04.2019 Mr. Suhail has withdrawn OMR 5000 for meeting his personal needs. Closing stock for the year ended is valued at OMR 15000.

On 01.01.2020 They admitted Mr.Omar into the firm for 1/4^th share and revalued assets and liabilities.

On revaluation of assets and liabilities they found that Land and building value is increased by OMR 10000 and stock value is increased by 5%. The value of goodwill arrived at OMR 10000. Mr Omar was asked to bring in OMR 30000 as his capital and OMR 3000 as his share of goodwill. Mr Omar brought the required amounts and joined the firm. On 31^st March Mr, Suhail died. Partners decided to settle his claim by paying OMR 5000 immediately and the balance amount if any in future. There were no change in the value of assets and liabilities as decided by the existing partners on revaluation of the same at the time of death of Mr. Suhail

Required:

1. Trading, profit and loss account for the year ended 31^st December 2019
2. Balance sheet as on 31.12.2019
3. Capital accounts of the partners for the year ended 31^st December 2019
4. Capital accounts of the partners after admission of Mr. Omar
5. Capital accounts of the partners and balance sheet after death of Mr. Suhail