A firm has two partners B and C sharing profit in the ratio of 3:2. they admit A into the firm as at 1-4-2016, when the balance sheet of the firm was as follow:- ________________________
(liabilities)
b capital 3000
c capital 10,000
profit and loss account 7500
creditors 7000
bill payable 2500
______
57000
_______
(assets)
machinery 18000
furniture 18000
investments 9000
stock 6000
debtors 4000
cash 2000
______
57000
______
________________________
terms of A admission were as follow:-
(1) A is to be bring ₹20000 as his capital for a 1/3rd share of profit and ₹3500 as his share of goodwill.
(2) value of machinery and stock are to be reduced by ₹7000 and ₹1000 respectively and the value of furniture to be increased by ₹3000.
(3) capital of the partners Shall by proportionate of their profit sharing ratio taking A capital as base. exess capital is to be withdrawn in cash by the partner concerned and the deficiency is to be made up by brinking cash.
_______________________
(prepare revaluation account, partners capital accounts and the balance sheet of the firm after the above adjustments)
_______________________
answers:- loss on revaluation:- ₹5000; capital balance:- B= ₹24000; C= ₹16000; D= ₹20000; cash balance:- ₹19500; total of the new balance sheet:- ₹69500)
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