BED and MATTRESS are in partnership sharing profits and losses 2/3 and 1/3 respoctively. They agreed...

   

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BED and MATTRESS are in partnership sharing profits and losses 2/3 and 1/3 respoctively. They agreed to amalgamate their business with that of BEDSHEET and PILLOW as on 30" June, 2020 BEDSHEET and PILLOW share profits and losses in the ratio of 2/3 and 1/3 respeetively,. As on that date, the summarized the separate statement of financial positions of ithe two firms were as follows: BED BEDSHEET MATTRESS PILLOW Non-current Assets: GHe 210,000 Land and Building Machinery Delivery Vans Furmiture and Equipment GHe 300,000 285,000 60,000 45,000 138.000 393 000 645.000 Current Assets: Inventory Trade Receivables Casth and Bank 165,000 327,000 192,000 81,000 63.000 309.000 519.000 Current Liabilities Trade Payables Acerued utility bills Bank overdraft 171,000 66,000 147.000 384,000 135,000 780.000 93,000 93.000 Working Capital Net Assets Employed 216.000 609.000 Finance by: Capital Accounts: BED 360,000 180,000 MATTRESS BEDSHEET 300,000 300,000 PILLOW Current Accounts: BED 30,000 39,000 MATTRESS BEDSHEET PILLOW 120,000 60.000 Z80.000 609.000 Additional information: Under the terms of the agreement, the new firm acquired all the assets and liabilities of BED & MATTRESS. The assets were taken over at the following revalued amounts: GH¢ Land and Building Delivery Vans Furniture and Equipment 360,000 270,000 120,000 150,000 81,000 Inventories Trade Receivables The new firm also took over all the assets of BEDSHEET & PILLOW and also assumed responsibility for discharging all the liabilities. The assets were revalued as follows: Land and Building Machinery Delivery Vans Inventories Trade Receivables GH¢ 600,000 240,000 60,000 243,000 183,000 For the purpose of the amalgamation, the values of BED & MATTRESS and BEDSHEET & PILLOW are transferred to the new firm, at GHE1,083,000 and GH¢1,080,000 respectively as the purchase considerations. It was further agreed that the initial capital of the new firm was to be GH¢2,400,000 to be contributed equally by the four partners. BED, MATTRESS, BEDSHEET and PILLOW are to be equal partners in the new firm. Required: i. Prepare Realisation Account in the books of each of the old firms as at 30 June 2020 ii. Prepare Partners' Capital Account for the period to 1 July 2020. Prepare Statement of Financial Position as at 1 July 2020. iii. (15 marks) BED and MATTRESS are in partnership sharing profits and losses 2/3 and 1/3 respoctively. They agreed to amalgamate their business with that of BEDSHEET and PILLOW as on 30" June, 2020 BEDSHEET and PILLOW share profits and losses in the ratio of 2/3 and 1/3 respeetively,. As on that date, the summarized the separate statement of financial positions of ithe two firms were as follows: BED BEDSHEET MATTRESS PILLOW Non-current Assets: GHe 210,000 Land and Building Machinery Delivery Vans Furmiture and Equipment GHe 300,000 285,000 60,000 45,000 138.000 393 000 645.000 Current Assets: Inventory Trade Receivables Casth and Bank 165,000 327,000 192,000 81,000 63.000 309.000 519.000 Current Liabilities Trade Payables Acerued utility bills Bank overdraft 171,000 66,000 147.000 384,000 135,000 780.000 93,000 93.000 Working Capital Net Assets Employed 216.000 609.000 Finance by: Capital Accounts: BED 360,000 180,000 MATTRESS BEDSHEET 300,000 300,000 PILLOW Current Accounts: BED 30,000 39,000 MATTRESS BEDSHEET PILLOW 120,000 60.000 Z80.000 609.000 Additional information: Under the terms of the agreement, the new firm acquired all the assets and liabilities of BED & MATTRESS. The assets were taken over at the following revalued amounts: GH¢ Land and Building Delivery Vans Furniture and Equipment 360,000 270,000 120,000 150,000 81,000 Inventories Trade Receivables The new firm also took over all the assets of BEDSHEET & PILLOW and also assumed responsibility for discharging all the liabilities. The assets were revalued as follows: Land and Building Machinery Delivery Vans Inventories Trade Receivables GH¢ 600,000 240,000 60,000 243,000 183,000 For the purpose of the amalgamation, the values of BED & MATTRESS and BEDSHEET & PILLOW are transferred to the new firm, at GHE1,083,000 and GH¢1,080,000 respectively as the purchase considerations. It was further agreed that the initial capital of the new firm was to be GH¢2,400,000 to be contributed equally by the four partners. BED, MATTRESS, BEDSHEET and PILLOW are to be equal partners in the new firm. Required: i. Prepare Realisation Account in the books of each of the old firms as at 30 June 2020 ii. Prepare Partners' Capital Account for the period to 1 July 2020. Prepare Statement of Financial Position as at 1 July 2020. iii. (15 marks) BED and MATTRESS are in partnership sharing profits and losses 2/3 and 1/3 respoctively. They agreed to amalgamate their business with that of BEDSHEET and PILLOW as on 30" June, 2020 BEDSHEET and PILLOW share profits and losses in the ratio of 2/3 and 1/3 respeetively,. As on that date, the summarized the separate statement of financial positions of ithe two firms were as follows: BED BEDSHEET MATTRESS PILLOW Non-current Assets: GHe 210,000 Land and Building Machinery Delivery Vans Furmiture and Equipment GHe 300,000 285,000 60,000 45,000 138.000 393 000 645.000 Current Assets: Inventory Trade Receivables Casth and Bank 165,000 327,000 192,000 81,000 63.000 309.000 519.000 Current Liabilities Trade Payables Acerued utility bills Bank overdraft 171,000 66,000 147.000 384,000 135,000 780.000 93,000 93.000 Working Capital Net Assets Employed 216.000 609.000 Finance by: Capital Accounts: BED 360,000 180,000 MATTRESS BEDSHEET 300,000 300,000 PILLOW Current Accounts: BED 30,000 39,000 MATTRESS BEDSHEET PILLOW 120,000 60.000 Z80.000 609.000 Additional information: Under the terms of the agreement, the new firm acquired all the assets and liabilities of BED & MATTRESS. The assets were taken over at the following revalued amounts: GH¢ Land and Building Delivery Vans Furniture and Equipment 360,000 270,000 120,000 150,000 81,000 Inventories Trade Receivables The new firm also took over all the assets of BEDSHEET & PILLOW and also assumed responsibility for discharging all the liabilities. The assets were revalued as follows: Land and Building Machinery Delivery Vans Inventories Trade Receivables GH¢ 600,000 240,000 60,000 243,000 183,000 For the purpose of the amalgamation, the values of BED & MATTRESS and BEDSHEET & PILLOW are transferred to the new firm, at GHE1,083,000 and GH¢1,080,000 respectively as the purchase considerations. It was further agreed that the initial capital of the new firm was to be GH¢2,400,000 to be contributed equally by the four partners. BED, MATTRESS, BEDSHEET and PILLOW are to be equal partners in the new firm. Required: i. Prepare Realisation Account in the books of each of the old firms as at 30 June 2020 ii. Prepare Partners' Capital Account for the period to 1 July 2020. Prepare Statement of Financial Position as at 1 July 2020. iii. (15 marks) BED and MATTRESS are in partnership sharing profits and losses 2/3 and 1/3 respoctively. They agreed to amalgamate their business with that of BEDSHEET and PILLOW as on 30" June, 2020 BEDSHEET and PILLOW share profits and losses in the ratio of 2/3 and 1/3 respeetively,. As on that date, the summarized the separate statement of financial positions of ithe two firms were as follows: BED BEDSHEET MATTRESS PILLOW Non-current Assets: GHe 210,000 Land and Building Machinery Delivery Vans Furmiture and Equipment GHe 300,000 285,000 60,000 45,000 138.000 393 000 645.000 Current Assets: Inventory Trade Receivables Casth and Bank 165,000 327,000 192,000 81,000 63.000 309.000 519.000 Current Liabilities Trade Payables Acerued utility bills Bank overdraft 171,000 66,000 147.000 384,000 135,000 780.000 93,000 93.000 Working Capital Net Assets Employed 216.000 609.000 Finance by: Capital Accounts: BED 360,000 180,000 MATTRESS BEDSHEET 300,000 300,000 PILLOW Current Accounts: BED 30,000 39,000 MATTRESS BEDSHEET PILLOW 120,000 60.000 Z80.000 609.000 Additional information: Under the terms of the agreement, the new firm acquired all the assets and liabilities of BED & MATTRESS. The assets were taken over at the following revalued amounts: GH¢ Land and Building Delivery Vans Furniture and Equipment 360,000 270,000 120,000 150,000 81,000 Inventories Trade Receivables The new firm also took over all the assets of BEDSHEET & PILLOW and also assumed responsibility for discharging all the liabilities. The assets were revalued as follows: Land and Building Machinery Delivery Vans Inventories Trade Receivables GH¢ 600,000 240,000 60,000 243,000 183,000 For the purpose of the amalgamation, the values of BED & MATTRESS and BEDSHEET & PILLOW are transferred to the new firm, at GHE1,083,000 and GH¢1,080,000 respectively as the purchase considerations. It was further agreed that the initial capital of the new firm was to be GH¢2,400,000 to be contributed equally by the four partners. BED, MATTRESS, BEDSHEET and PILLOW are to be equal partners in the new firm. Required: i. Prepare Realisation Account in the books of each of the old firms as at 30 June 2020 ii. Prepare Partners' Capital Account for the period to 1 July 2020. Prepare Statement of Financial Position as at 1 July 2020. iii. (15 marks) BED and MATTRESS are in partnership sharing profits and losses 2/3 and 1/3 respoctively. They agreed to amalgamate their business with that of BEDSHEET and PILLOW as on 30" June, 2020 BEDSHEET and PILLOW share profits and losses in the ratio of 2/3 and 1/3 respeetively,. As on that date, the summarized the separate statement of financial positions of ithe two firms were as follows: BED BEDSHEET MATTRESS PILLOW Non-current Assets: GHe 210,000 Land and Building Machinery Delivery Vans Furmiture and Equipment GHe 300,000 285,000 60,000 45,000 138.000 393 000 645.000 Current Assets: Inventory Trade Receivables Casth and Bank 165,000 327,000 192,000 81,000 63.000 309.000 519.000 Current Liabilities Trade Payables Acerued utility bills Bank overdraft 171,000 66,000 147.000 384,000 135,000 780.000 93,000 93.000 Working Capital Net Assets Employed 216.000 609.000 Finance by: Capital Accounts: BED 360,000 180,000 MATTRESS BEDSHEET 300,000 300,000 PILLOW Current Accounts: BED 30,000 39,000 MATTRESS BEDSHEET PILLOW 120,000 60.000 Z80.000 609.000 Additional information: Under the terms of the agreement, the new firm acquired all the assets and liabilities of BED & MATTRESS. The assets were taken over at the following revalued amounts: GH¢ Land and Building Delivery Vans Furniture and Equipment 360,000 270,000 120,000 150,000 81,000 Inventories Trade Receivables The new firm also took over all the assets of BEDSHEET & PILLOW and also assumed responsibility for discharging all the liabilities. The assets were revalued as follows: Land and Building Machinery Delivery Vans Inventories Trade Receivables GH¢ 600,000 240,000 60,000 243,000 183,000 For the purpose of the amalgamation, the values of BED & MATTRESS and BEDSHEET & PILLOW are transferred to the new firm, at GHE1,083,000 and GH¢1,080,000 respectively as the purchase considerations. It was further agreed that the initial capital of the new firm was to be GH¢2,400,000 to be contributed equally by the four partners. BED, MATTRESS, BEDSHEET and PILLOW are to be equal partners in the new firm. Required: i. Prepare Realisation Account in the books of each of the old firms as at 30 June 2020 ii. Prepare Partners' Capital Account for the period to 1 July 2020. Prepare Statement of Financial Position as at 1 July 2020. iii. (15 marks) BED and MATTRESS are in partnership sharing profits and losses 2/3 and 1/3 respoctively. They agreed to amalgamate their business with that of BEDSHEET and PILLOW as on 30" June, 2020 BEDSHEET and PILLOW share profits and losses in the ratio of 2/3 and 1/3 respeetively,. As on that date, the summarized the separate statement of financial positions of ithe two firms were as follows: BED BEDSHEET MATTRESS PILLOW Non-current Assets: GHe 210,000 Land and Building Machinery Delivery Vans Furmiture and Equipment GHe 300,000 285,000 60,000 45,000 138.000 393 000 645.000 Current Assets: Inventory Trade Receivables Casth and Bank 165,000 327,000 192,000 81,000 63.000 309.000 519.000 Current Liabilities Trade Payables Acerued utility bills Bank overdraft 171,000 66,000 147.000 384,000 135,000 780.000 93,000 93.000 Working Capital Net Assets Employed 216.000 609.000 Finance by: Capital Accounts: BED 360,000 180,000 MATTRESS BEDSHEET 300,000 300,000 PILLOW Current Accounts: BED 30,000 39,000 MATTRESS BEDSHEET PILLOW 120,000 60.000 Z80.000 609.000 Additional information: Under the terms of the agreement, the new firm acquired all the assets and liabilities of BED & MATTRESS. The assets were taken over at the following revalued amounts: GH¢ Land and Building Delivery Vans Furniture and Equipment 360,000 270,000 120,000 150,000 81,000 Inventories Trade Receivables The new firm also took over all the assets of BEDSHEET & PILLOW and also assumed responsibility for discharging all the liabilities. The assets were revalued as follows: Land and Building Machinery Delivery Vans Inventories Trade Receivables GH¢ 600,000 240,000 60,000 243,000 183,000 For the purpose of the amalgamation, the values of BED & MATTRESS and BEDSHEET & PILLOW are transferred to the new firm, at GHE1,083,000 and GH¢1,080,000 respectively as the purchase considerations. It was further agreed that the initial capital of the new firm was to be GH¢2,400,000 to be contributed equally by the four partners. BED, MATTRESS, BEDSHEET and PILLOW are to be equal partners in the new firm. Required: i. Prepare Realisation Account in the books of each of the old firms as at 30 June 2020 ii. Prepare Partners' Capital Account for the period to 1 July 2020. Prepare Statement of Financial Position as at 1 July 2020. iii. (15 marks)

Answer rating: 100% (QA)

Rodisation Atcount fer onthe year ended 30 June 2010 BED DEDSAEET MATTRES PJLLOW G H BED J BEDSHEET ... View the full answer