P, Q and R were in partnership sharing profits and losses in the proportion of 3: 2:1. Their Balance Sheet as at 31.3.2015 was as under BALANCE SHEET as at 31.3.2015 Liabilities $ Assets $ Creditors 27,000 18,000 Cash in hand Cash at bank 2,000 250 Bills Payable General Reserve 12,000 Debtors 20,000 Profit and Loss A/c 6,000 Stock Capital Accounts : 11,800 50,000 Buildings 40,000 Machinery 24,000 Q 20,000 Loose Tools 5,750 R 10,000 70,000 Furniture 8,200 Patents 2,000 Goodwill 9,000 1,33,000 1,33,000 On the same date, Q was retired and the following terms were agreed upon: (i) Goodwill for the firm is valued at $ 12,000. (ii) Machinery and Loose tools are to be valued at 20% less than their book value. (iii) The Buildings be decreased to $40,000. (iv) Furniture to be appreciated by 15%, and Creditors to be reduced by $ 620 (v) $ 1,300 to be paid to Q immediately and the balance to be transferred to his loan account, carrying interest at 6% per annum. You are required to prepare Revaluation Account, the Capital Accounts of the Partners and the Balance Sheet of the firm as at 31.3.2015.

P, Q and R were in partnership sharing profits and losses in the proportion of 3: 2:1. Their Balance Sheet as at 31.3.2015 was as under BALANCE SHEET as at 31.3.2015 Liabilities $ Assets $ Creditors 27,000 18,000 Cash in hand Cash at bank 2,000 250 Bills Payable General Reserve 12,000 Debtors 20,000 Profit and Loss A/c 6,000 Stock Capital Accounts : 11,800 50,000 Buildings 40,000 Machinery 24,000 Q 20,000 Loose Tools 5,750 R 10,000 70,000 Furniture 8,200 Patents 2,000 Goodwill 9,000 1,33,000 1,33,000 On the same date, Q was retired and the following terms were agreed upon: (i) Goodwill for the firm is valued at $ 12,000. (ii) Machinery and Loose tools are to be valued at 20% less than their book value. (iii) The Buildings be decreased to $40,000. (iv) Furniture to be appreciated by 15%, and Creditors to be reduced by $ 620 (v) $ 1,300 to be paid to Q immediately and the balance to be transferred to his loan account, carrying interest at 6% per annum. You are required to prepare Revaluation Account, the Capital Accounts of the Partners and the Balance Sheet of the firm as at 31.3.2015.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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P, Q & R were partners sharing profits and losses in the ratio of 5:3:2. On 31st Dec. 2012 their Balance Sheet stood as follows: BALANCE SHEET as at 31.12.2012 Liabilities $| Assets $ 1,40,000 1,40,000 17,500 5,25,000 3,50,000 2,62,500 87,500 15,22,500 Sundry Creditors General Reserve Capitals - 1,92,500 1,05,000 Cash at Bank Debtors Stock 5,25,000 4,37,500 2.62,500 12,25,000 Machinery Building Q Patents Goodwill 15,22,500 R died on 31s' March 2013, the following adjustments were made: (a) Goodwill be valued at 2½ years' purchase of the average profits of last four years, The profits for the last four years were as under: 2009 – $ 2,27,000; 2010 – $ 2,10,000; 2011 - $ 2,80,000; 2012 – $ 2,60,000 (b) Machinery be valued at $ 2,90,000; Patents be valued at $ 4,97,500; Building be valued at $ 4,37,500. (c) For the purpose of calculating R's share in the profits, profits of 2013 should be taken to have accrued on the basis of profits of 2012. Calculate the amount payable to the executors…
GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…
6. The following balances have been taken from the balance sheet of a partnership firm as atDec. 31, 2020:Debit Balances:Cash Rs. 325,000, Accounts Receivable Rs. 300,000, Merchandise Inventory Rs. 575,000,Furniture Rs. 300,000Credit Balances:Allowance for bad debt Rs. 30,000, Allowance for depreciation-Furniture Rs. 120,000, AccountsPayable Rs. 50,000, X Capital Rs.500,000, Y Capital Rs. 600,000, Z Capital Rs. 200,000 The partners were sharing profit and loss in their capital ratio. On the mentioned date theydecided to liquidate the partnership firm and the following transactions were performed:a. Rs. 250,000 was collected as full and final settlement of accounts receivable.b. Merchandise inventory was sold for Rs. 500,000 cash.c. Furniture was sold for cash Rs. 145,000d. Accounts Payable was fully paid.e. Loss on liquidation was distributed among the partners.f. Final Settlement to the partners was made.Required:Record the above transactions in General Journal
A, B and C are in partnership sharing profits and losses at the ratio of 5: 3:2. The balance sheet of the firm on 31.12.2021 was as follows: Liabilities Capital A/cs A B C Bank Loan Trade payables Balance Sheet Assets Sundry Fixed Assets Inventories 50,000 40,000 Trade receivables 30,000 Joint Life Policy 40,000 Bank 30,000 1,90,000 80,000 50,000 30,000 20,000 10,000 1,90,000 On 1.1.2022, A wants to retire, B and C agreed to continue at 2:1. Joint Life Policy was taken on 1.1.2016 for 1,00,000 and its surrender value as on 31.12.2021 was 25,000. For the purpose of A's retirement goodwill was raised for ₹1,00,000. Sundry Fixed Assets was revalued for 1,10,000. But B and C did not prefer to show such increase in assets in the Balance Sheet. Also they agreed to bring necessary cash to discharge 50% of the A's claim, to make the bank balance 25,000 and to make their capital proportionate. Prepare necessary journal entries.
The following s the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount 76500 Provision for bad debts 212500 Commission 6375 Y's Loan A/c 212500 Plant and Machinery 127500 Wages Opening Stock of Finished Goods Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors Carriage inwards Carriage outwards Factory Expenses Royalties 106250 1381250 10625 6375 42500 127500 3825 31875 6375 Purchase of Raw material (net) 318750 Factory rent & taxes Discount 27625 0. 12325 17000 8500 0. Office rent Insurance Bad debts Office Expenses Salaries of works manager 6375 31875 S1000 Cash at bank 34850 2014500 The following additional information is to be taken into…
Use the following information for numbers 29 and 30. On June 30, 2018, the balance sheet for the partnership of D, E and F, together with their respective profit and loss ratios, is summarized as follows: Assets 300,000 D, Loan 15,000 D, Capital (20%) 70,000 E, Capital (20%) F, Capital (60%) Total Liabilit ies and Capital 65,000 150,000 Total Assets 300,000 300,000 D has decided to retire from the partnership, and by mutual agreement the assets are to be adjusted to their fair values of P260,000 at June 30, 2018. It is agreed that the partnership will pay D, P102,000 cash for his interest exclusive of his loan which is to be repaid in full. After D's retirement, what are the capital balances of each partner? 29. Partner E. 30. Partner F.
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
14. On December 31, 2015, the statement of financial position of JMR Partnership is presented below: Assets, at cost 180,000 JJ, loan JJ, capital мм, саpital RR, capital Total 10,000 45,000 40,000 85,000 180,000
57 On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash P1,000,000 Other liabilities P2,000,000 Receivable from A 500,000 Payable to B 1,000,000 Other noncash assets 2,000,000 Payable to C 100,000 A, Capital 700,000 B, Capital (650,000) C, Capital 350,000 On January 1, 20x21, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other noncash assets are sold for P1,500,000. Liquidation expenses amounting to P100,000 were incurred. How much cash was received by C at the end of partnership liquidation?
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 187500 x Capital A/c 56250 Y Capital A/c 25000 Sundry creditors 50000 Sales (net) 25000 Discount 22500 Provision for bad debts 62500 37500 Plant and Machinery Wages 31250 Opening Stock of Finished Goods 406250 3125 Opening Stock of Raw material Opening Stock of Work in Progress 1875 Sundry debtors 62500 Commission 12500 Carriage inwards 1875 Y's Loan A/c 37500 Carriage outwards 1125 Factory Expenses 9375 Royalties 1875 Purchase of Raw material (net) 93750 Factory rent & taxes 8125 Discount 3625 Office rent 5000 Insurance 2500 Bad debts 1875 Office Expenses 9375 Salaries of works manager 15000 Cash at bank 10250 592500 The following additional information is to be taken into consideration: 592500…
A,B and C were partners sharing profits and losses 2:3:1. The position of the firm as on 1-4-2014 and 31-3-2015 was : 01/04/2014 31/03/2015 01/04/2014 31/03/2015 A's Capital B's Capital C's Capital General Reserve Capital Reserve Bank Overdraft Fixed Assets Debtors Stock Loans and Advances 20,000 18,000 30,000 28,000 40,000 36,000 40,000 37,000 65,000 22,000 10,000 9,000 20,000 30,000 72,000 32,000 12,000 12,000 10,000 1,22,000 5,000 1,52,000 On 1st April, 2014 the partners decided to change their profit and loss sharing ratio to 2:4:1. 1,22,000 1,52,000 Goodwill was valued at $ 42,000. No entries were, however, passed to give effect to this change. Pass Journal entries in the books of the firm as on 31st March, 2015 and prepare Capital Accounts of the Partners.
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