Admission of a New Partner 1. Explain any 3 adjustments required at the time of admission...

  

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Admission of a New Partner 1. Explain any 3 adjustments required at the time of admission of a partner, a. Calculation of New Profit Sharing Ratio. b. Revaluation of Assets and Liabilities of the firm 2. Why and how new partner is admitted in partnership business? From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date. Debit Balances Opening stock Purchases Debtors Wages Salaries Land and Building Plant and Machinery Furniture Advertisement Bills Receivable Insurance Drawings - Saleh Ammar Cash in hand Rent Power and fuel Amt. 20,000 Credit Balances Capital A/cs Saleh Ammar 30,000 Sales 12,000 Sundry Creditors 5,000 Bills payable 10,000 Discount 30,000 Outstanding Rent 25,000 16,000 6,000 8,000 2,000 2,000 3,000 5,500 10,000 3,000 1,87,500 Amt. 40,000 30,000 70,000 21,000 20,000 5,000 1,500 1,87,500 A. Saleh and Ammar are partners sharing profit and losses in the ratio 3:2. From the following Trial Balance and adjustments; prepare the following: a) Adjusting Entries (2.5 marks) b) Income Statement for the year ended March 31, 2019 (2.5) c) Profit and Loss Appropriation Account (3.0) d) Partners' Capital Accounts (2.5) e) Balance Sheet (2.5) 1) Stock on hand on 31st March, 2019 was at OMR 35,000. 2) Provision for doubtful debts at 5% on debtors. 3) Depreciate Land and Building at 5% and Machinery at 10%. 4) Outstanding expenses were wages OMR 2,000 and salary OMR 1,000. 5) Prepaid advertising is OMR 1,200. The following were agreed upon: a) Both partners are entitled to a salary of OMR 500 each per month. b) Interest on drawing is 5% p. a. c) Interest on capital is 8% p.a. 1. Explain any 3 adjustments required at the time of admission of a partner, a. Calculation of New Profit Sharing Ratio. b. Revaluation of Assets and Liabilities of the firm 2. Why and how new partner is admitted in partnership business? From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March 2012 and Balance Sheer as on that date Admission of a New Partner 1. Explain any 3 adjustments required at the time of admission of a partner, a. Calculation of New Profit Sharing Ratio. b. Revaluation of Assets and Liabilities of the firm 2. Why and how new partner is admitted in partnership business? From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date. Debit Balances Opening stock Purchases Debtors Wages Salaries Land and Building Plant and Machinery Furniture Advertisement Bills Receivable Insurance Drawings - Saleh Ammar Cash in hand Rent Power and fuel Amt. 20,000 Credit Balances Capital A/cs Saleh Ammar 30,000 Sales 12,000 Sundry Creditors 5,000 Bills payable 10,000 Discount 30,000 Outstanding Rent 25,000 16,000 6,000 8,000 2,000 2,000 3,000 5,500 10,000 3,000 1,87,500 Amt. 40,000 30,000 70,000 21,000 20,000 5,000 1,500 1,87,500 A. Saleh and Ammar are partners sharing profit and losses in the ratio 3:2. From the following Trial Balance and adjustments; prepare the following: a) Adjusting Entries (2.5 marks) b) Income Statement for the year ended March 31, 2019 (2.5) c) Profit and Loss Appropriation Account (3.0) d) Partners' Capital Accounts (2.5) e) Balance Sheet (2.5) 1) Stock on hand on 31st March, 2019 was at OMR 35,000. 2) Provision for doubtful debts at 5% on debtors. 3) Depreciate Land and Building at 5% and Machinery at 10%. 4) Outstanding expenses were wages OMR 2,000 and salary OMR 1,000. 5) Prepaid advertising is OMR 1,200. The following were agreed upon: a) Both partners are entitled to a salary of OMR 500 each per month. b) Interest on drawing is 5% p. a. c) Interest on capital is 8% p.a. 1. Explain any 3 adjustments required at the time of admission of a partner, a. Calculation of New Profit Sharing Ratio. b. Revaluation of Assets and Liabilities of the firm 2. Why and how new partner is admitted in partnership business? From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March 2012 and Balance Sheer as on that date

Answer rating: 100% (QA)

Answer Adjusting Entries Date Particulars Debit Credit March 31 Closing stock 35000 Income summaryTrading account 35000 March 31 Income summary Profit ... View the full answer