Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio...
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Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as on March 31, 2021. Liabilities & Equity RO Assets RO Bills Payable 80000 Cash in Hand 1875 Sundry Creditors 156250 Cash at Bank 511250 Outstanding Expenses 1250 Debtors 222500 Capital: 0 Stock 278750 Lalitha 500000 Furniture 43750 Jothi 312500 Plant and Machinery 121875 Kanaga 375000 Building 300000 Profits & Loss A/c 0 55000 1480000 1480000 Lalitha retired from the partnership on April 01, 2021 under the following terms: The assets are to be valued as under: Stock 250000 Furniture. 37500 Plant & Machinery Building 112500 250000 A provision for doubtful debt to be created at 10625 Goodwill of the firm was to be valued at 75000 The gaining ratio is 2:3. Lalitha was to be paid off immediately. Record the necessary journal entries, prepare Revaluation Account, Capital Accounts and Balance Sheet of the reconstituted partnership. Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as on March 31, 2021. Liabilities & Equity RO Assets RO Bills Payable 80000 Cash in Hand 1875 Sundry Creditors 156250 Cash at Bank 511250 Outstanding Expenses 1250 Debtors 222500 Capital: 0 Stock 278750 Lalitha 500000 Furniture 43750 Jothi 312500 Plant and Machinery 121875 Kanaga 375000 Building 300000 Profits & Loss A/c 0 55000 1480000 1480000 Lalitha retired from the partnership on April 01, 2021 under the following terms: The assets are to be valued as under: Stock 250000 Furniture. 37500 Plant & Machinery Building 112500 250000 A provision for doubtful debt to be created at 10625 Goodwill of the firm was to be valued at 75000 The gaining ratio is 2:3. Lalitha was to be paid off immediately. Record the necessary journal entries, prepare Revaluation Account, Capital Accounts and Balance Sheet of the reconstituted partnership.
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Date 01Apr Revaluation Ac Stock Furniture Plant machinery Bui... View the full answer
Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
Posted Date:
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