Z retires on 1st April, 2011 subject to the following adjustments:
(i) Freehold Property be valued at Rs. 5,80,000
(ii) Investments be valued at Rs. 47,000 and stocks be valued at Rs. 94,000
(iii) A provision of 5% be made for doubtful debts
(iv) Trade marks are valueless
(v) An item of Rs. 12,000 included in creditors is not likely to be claimed.
(vi) Goodwill be valued at one year's purchase of the average profit of the past three years. Profits ending 31st March were : 2009 Rs. 1,20,000, 2010 Rs. 1,00,000 and 2011 Rs. 95,000.
Pass journal entries, give capital accounts and the balance sheet of the remaining partners.
Building
Stock
Debtors
Cash at Bank
Profit and Loss Account
2,40,000
65,000
30,000
5,000
60,000
4,00,000
4,00,000
Punita died on 30th September 2016. She had withdrawn Rs. 44,000 from capital on July 1, 2016. According to the partnership agreement, she was entitled to interest on capital @ 8% p.a. Her share of profit till the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was to be calculated on the basis of three times the average profit of the last four year. The profit for the year ended 2012-13, 2013-14 and 2014-15 were Rs. 30,000 Rs. 70,000 and Rs. 80,000 respectively.
Prepare Punita 's account to be rendered to her executors .
Creditors
Provident Fund
Investment Fluctuation Fund
Capital A/c Lokesh 1,40,000
Masoor 80,000
Nihal 50,000
34,000
10,000
20,000
2,70,000
Cash
Stock
Debtors 98,000
Less : Provision 6,000
Investment
Goodwill
Profit and Loss
68,000
38,000
88,000
80,000
40,000
20,000
3,34,000
3,34,000
On the above date, Mansoor retired and Lokesh and Nihal agreed to continue on the following terms :
(i) Firm's goodwill was valued at Rs. 1,02,000 and it was decided to adjust Mansoor's share of goodwill into the Capital Accounts of the continuing partners.
(ii) There was a claim for Workmen's Compensation to the extent of Rs. 12,000 and investments were brought down to Rs, 30,000.
(iii) Provision for Bad Debts was to be reduced by Rs.2,000.
(iv) Mansoor was to be paid Rs. 20,600 in cash and the balance will be transferred to his Loan Account which was paid in two equal instalments together with interest @10% per annum.
(v) Lokes's and Nihal's capital were to be adjusted in their new profit-sharing ratio by bringing in or paying off cash as the case may be.
Prepare Revaluation Account and Partners' Capital Accounts.
What does creditors written back mean ? Is it a profit or loss , according to the answers of the previous question I asked it's a loss and the creditors would increase, but in the actual answer creditors are decreased and it's a profit
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accountancy solution of together with
Distinguish between sacrificing ratio and gaining ratio.
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cbse questions of D.K goyal
A, B and C were in partnership sharing profits in proportion to their capitals Their Balancd Sheet on 31-03-2008 was as follows:
LIABILITIES
Creditors: 15,600
Reserve: 6,000
A's Capital: 90,000
B's Capital: 60,000
C's Capital: 30,00
ASSET
Building: 1,00,000
Debtors: 48,000
Stock18,000
Debtors: 20,000
less: Prov for doubtful debts 400 =19,600
Cash 16,000
Total: 2,01,600
On the above date B retired owing to ill health and the following adjustments were agreed upon
P, Q and R were partners in a firm sharing profits in the ration of 2:3:5. On 31-03-2004, thier balance sheet was as follows
LIABILITIES
Creditors - 70,000
Capital Accounts:
P: 80,000
Q: 70,000
R: 60,000
Total : 2,80,000
ASSETS
Bank: 45000
Debtor: 40,000
Less 5000 = 35000
Stock: 50,000
Building 1,40,000
Profit And Loss A/c: 10,000
Total 2,80,000
On the above date, R retired from the firm due to illness on the following terms:
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of P and Q after R's Retirement.
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What is the difference between liability written off and written back , and what does unclaimed liability written off mean , it's a profit or loss ?
General Reserve
Provident Fund
Capitals:
X 3,00,000
Y 2,00,000
X 2,00,000
60,000
20,000
7,00,000
Debtors
Stock
Investments (at cost)
Freehold Property
Trade Marks
Goodwill
2,00,000
1,00,000
50,000
4,00,000
20,000
33,000
(i) Freehold Property be valued at Rs. 5,80,000
(ii) Investments be valued at Rs. 47,000 and stocks be valued at Rs. 94,000
(iii) A provision of 5% be made for doubtful debts
(iv) Trade marks are valueless
(v) An item of Rs. 12,000 included in creditors is not likely to be claimed.
(vi) Goodwill be valued at one year's purchase of the average profit of the past three years. Profits ending 31st March were : 2009 Rs. 1,20,000, 2010 Rs. 1,00,000 and 2011 Rs. 95,000.
Pass journal entries, give capital accounts and the balance sheet of the remaining partners.
how to find sacrificing ratio of the partners
Q11. Following is the Balance Sheet of Punita, Rashi and Seema who are sharing profits in the ratio 2 : 1 : 2 as on 31st March 2016 :
Bills payable
Capitals :
Punita 1,44,000
Rashi 92,000
Seema 1,24,000
2,000
3,60,000
Stock
Debtors
Cash at Bank
Profit and Loss Account
65,000
30,000
5,000
60,000
Punita died on 30th September 2016. She had withdrawn Rs. 44,000 from capital on July 1, 2016. According to the partnership agreement, she was entitled to interest on capital @ 8% p.a. Her share of profit till the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was to be calculated on the basis of three times the average profit of the last four year. The profit for the year ended 2012-13, 2013-14 and 2014-15 were Rs. 30,000 Rs. 70,000 and Rs. 80,000 respectively.
Prepare Punita 's account to be rendered to her executors .
Q19. Lokesh, Mansoor and Nihal were partners in a firm sharing profit as 50%, 30% and 20% respectively. On 31st March, 2014, their Balance Sheet was as follows :
Provident Fund
Investment Fluctuation Fund
Capital A/c Lokesh 1,40,000
Masoor 80,000
Nihal 50,000
10,000
20,000
2,70,000
Stock
Debtors 98,000
Less : Provision 6,000
Investment
Goodwill
Profit and Loss
38,000
88,000
80,000
40,000
20,000
On the above date, Mansoor retired and Lokesh and Nihal agreed to continue on the following terms :
(i) Firm's goodwill was valued at Rs. 1,02,000 and it was decided to adjust Mansoor's share of goodwill into the Capital Accounts of the continuing partners.
(ii) There was a claim for Workmen's Compensation to the extent of Rs. 12,000 and investments were brought down to Rs, 30,000.
(iii) Provision for Bad Debts was to be reduced by Rs.2,000.
(iv) Mansoor was to be paid Rs. 20,600 in cash and the balance will be transferred to his Loan Account which was paid in two equal instalments together with interest @10% per annum.
(v) Lokes's and Nihal's capital were to be adjusted in their new profit-sharing ratio by bringing in or paying off cash as the case may be.
Prepare Revaluation Account and Partners' Capital Accounts.