The Balance sheet of Asma, Ammar and Anas who are partners in a firm as on...

 

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The Balance sheet of Asma, Ammar and Anas who are partners in a firm as on 31" December 2020 was as under: Amount (RO) Liabilities Creditors Bills Payable Amount(RO) 50,000 Assets Machinery 80,000 Building 180,000 26,000 General Reserves 44,000 Sundry Debtors 58,000 46,000 Capital: Asma Ammar Anas Stock 120,000 80,000 80,000 Cash at Bank 36,000 400,000 400,000 On The date of Balance Sheet, Ammar retired from the firm, and following adjustments were made: a Building is appreciated by 20%. b. Provision for bad debts is increase to 5% on debtors e. Machinery is depreciated by 10% d. Creditors Written off 6,000 e. Goodwill of the firm is valued at RO 112,000. r. RO 20,000 is paid to the retiring partner and the balance is paid in instalments. Pass the necessary Journal entries and Prepare Revaluation Account, Capital accounts of the Partners and Balance sheet of the New Firm after Ammar's Retirement. The Balance sheet of Asma, Ammar and Anas who are partners in a firm as on 31" December 2020 was as under: Amount (RO) Liabilities Creditors Bills Payable Amount(RO) 50,000 Assets Machinery 80,000 Building 180,000 26,000 General Reserves 44,000 Sundry Debtors 58,000 46,000 Capital: Asma Ammar Anas Stock 120,000 80,000 80,000 Cash at Bank 36,000 400,000 400,000 On The date of Balance Sheet, Ammar retired from the firm, and following adjustments were made: a Building is appreciated by 20%. b. Provision for bad debts is increase to 5% on debtors e. Machinery is depreciated by 10% d. Creditors Written off 6,000 e. Goodwill of the firm is valued at RO 112,000. r. RO 20,000 is paid to the retiring partner and the balance is paid in instalments. Pass the necessary Journal entries and Prepare Revaluation Account, Capital accounts of the Partners and Balance sheet of the New Firm after Ammar's Retirement.

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JOURNAL ENTRIES DATE PARTICULARS LF DR CR 311220 GENERAL RESERVE AC DR 44000 14667 TO ASMAS CAPITAL ... View the full answer