Question - 43 (A, B and C)
'X', 'Y' and 'Z' are partners on 31st March, 2008 their balance sheet was as follows:
Balance Sheet
As at 31st March 2008
Liabilities Amount
Creditors 3,000
Capital A/c
'X' 2,000
'Y' 1,700
'Z' 1,500 5,250
8,250
Assets Amount
Machinery 1,200
Furniture 400
Stock 2,650
Debtors 3,750
Cash 220
8,520
On 1st April 2008 they agree to give admission to A in equal partnership on the following terms He is bring in Rs. 1,500 as goodwill and Rs. 1,800 as capital in cash mahinery and furniture are to be valued at Rs. 950 and Rs. 380 and Depreciation be written off value of stock is to be increased by Rs. 450.
Prepare Revaluation A/c and give partners capital Account.
(B)
'X', and 'Y' were partners in ratio of 3:1their balance sheet on 31st December, 2014 was as follows:
Liabilities Amount
Creditors 10,000
Capital A/c
'X' 30,000
'Y' 10,000 40,000
B/P 12,000
62,000
Assets Amount
Building 24,000
Furniture 2,000
Stock 20,000
Debtors 16,000
62,000
They admitted Z on 1st January 2015 on the following conditions:
- Z should bring Rs. 10,000 as capital.
- Z should bring for 1/5th share of goodwill Rs. 8,000.
- Reduce furniture and stock at 10%.
- Reserve for Bad debts at 5%.
- Increase building by 20%.
Prepare Revaluation account and partners capital account.
(C)
Balance sheet of X and Y.
Liabilities Amount
Creditors 20,000
Capital A/c
'X' 15,000
'Y' 10,000 25,000
B/P 10,000
Genral Reserve 6,000
61,000
Assets Amount
Building 27,000
Furniture 4,000
Bank 20,000
Debtors 10,000
61,000
They admitted Z into partnership on the following conditions:
- A goodwill account to be raised in the books for Rs. 10,000.
- Furniture and building to be depreciated by 5%.
- Reserve of 5% on Debtors to be created.
- Capital account of all the partners be adjusted on the basis of profit and loss ratio.
- Z brings Rs. 12,000 as capital and gets 1/4 share in future profits.
Prepare Revaluation account.
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