Q.2 The following was the Balance sheet of A, B and C sharing profits and losses...

 

Transcribed Image Text:

Q.2 The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of 5:3:2 Amount(RO) Liabilities Creditors Bills Payable General Reserves Capital Accounts A 40,000 B 35,000 C 25,000 20,000 8,000 10,000 100,000 138,000 Assets Cash at Bank Stock Debtors Furniture Land Buildings Amount (RO) 15,000 25,000 30,000 8,000 and 60,000 138,000 They Admit D into Partnership giving him 1/5th share of profits on the following terms: 1. That D brings in RO 25,000 as his Capital 2. Furniture be written down by 5% and Stock be depreciated by 10% 3. Provision of RO 21,00 be made for Outstanding expenses 4. Value of land and Building be appreciated by 20% 5. Goodwill already appears in the books at RO 20,000 Write the Necessary Journal Entries. Prepare Revaluation Account, Capital Accounts and Balance sheet of the firm as newly constituted. Q.2 The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of 5:3:2 Amount(RO) Liabilities Creditors Bills Payable General Reserves Capital Accounts A 40,000 B 35,000 C 25,000 20,000 8,000 10,000 100,000 138,000 Assets Cash at Bank Stock Debtors Furniture Land Buildings Amount (RO) 15,000 25,000 30,000 8,000 and 60,000 138,000 They Admit D into Partnership giving him 1/5th share of profits on the following terms: 1. That D brings in RO 25,000 as his Capital 2. Furniture be written down by 5% and Stock be depreciated by 10% 3. Provision of RO 21,00 be made for Outstanding expenses 4. Value of land and Building be appreciated by 20% 5. Goodwill already appears in the books at RO 20,000 Write the Necessary Journal Entries. Prepare Revaluation Account, Capital Accounts and Balance sheet of the firm as newly constituted.

Answer rating: 100% (QA)

Journal Date LF Debit RO Credit RO Revaluation Account 23900 To Furniture Account 400 To Provision against Stock 2500 To Provision for Expenses 21000 ... View the full answer