Liabilities General Reserve Sundry creditors Capitals: A: 60,000 B: 40,000 C: 20,000 + Particulars Balance Sheet...

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Liabilities General Reserve Sundry creditors Capitals: A: 60,000 B: 40,000 C: 20,000 + Particulars Balance Sheet of A, B and C as on 31-3-2019 Amount(OMR) Assets Particulars A Particulars Liabilities 21,000 84,115 120,000 225,115 On the above date, D was admitted as a new partner for 1/6 share of the future profits on the following terms and it was decided that: B Cash at bank Investments You are required to prepare Revaluation Account, Capital accounts, cash or bank accounts (if necessary) and the Balance Sheet of the reconstituted firm after admission of the new partner. Solution: C Sundry debtors Stock Amount(OMR) Machinery Furniture and Fittings 1. The New profit sharing ratio between A,B,C and D will be 2:2:1:1 2. D will bring a capital of OMR 75,000 and OMR 15,000 as her share of goodwill. 3. Goodwill of the firm being valued at OMR 90,000 4. The market value of investments was OMR 24,000. 5. Machinery will be reduced to OMR 29,000 6. A creditor of OMR 3,000 was not likely to claim the amount and hence, to be written off. D Revaluation A/c Particulars Capital A/c Particulars Cash/Bank A/c Amount(OMR) Particulars Amount (OMR) 17,000 30,000 Balance Sheet Amount(OMR) Assets 23,115 110,000 A 35,000 10,000 225,115 B Amount(OMR) с D Amount(OMR) Amount(RO) Liabilities General Reserve Sundry creditors Capitals: A: 60,000 B: 40,000 C: 20,000 + Particulars Balance Sheet of A, B and C as on 31-3-2019 Amount(OMR) Assets Particulars A Particulars Liabilities 21,000 84,115 120,000 225,115 On the above date, D was admitted as a new partner for 1/6 share of the future profits on the following terms and it was decided that: B Cash at bank Investments You are required to prepare Revaluation Account, Capital accounts, cash or bank accounts (if necessary) and the Balance Sheet of the reconstituted firm after admission of the new partner. Solution: C Sundry debtors Stock Amount(OMR) Machinery Furniture and Fittings 1. The New profit sharing ratio between A,B,C and D will be 2:2:1:1 2. D will bring a capital of OMR 75,000 and OMR 15,000 as her share of goodwill. 3. Goodwill of the firm being valued at OMR 90,000 4. The market value of investments was OMR 24,000. 5. Machinery will be reduced to OMR 29,000 6. A creditor of OMR 3,000 was not likely to claim the amount and hence, to be written off. D Revaluation A/c Particulars Capital A/c Particulars Cash/Bank A/c Amount(OMR) Particulars Amount (OMR) 17,000 30,000 Balance Sheet Amount(OMR) Assets 23,115 110,000 A 35,000 10,000 225,115 B Amount(OMR) с D Amount(OMR) Amount(RO)

Answer rating: 100% (QA)

Revaluation Account Particulars Amount OMR Particulars Amount OMR Goodwill 90000 15000 75000 Machine... View the full answer