At 31 December 2013, the statement of financial position of A, B and C, who are equal

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At 31 December 2013, the statement of financial position of A, B and C, who are equal partners, was as follows

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A retired at that date. In order to determine the amount due to him the following revaluations were made: Freehold premises £18,000; machinery and tools £16,000; investments £5,100. The value of the goodwill was agreed at £8,000. It was arranged that A should take over the investments in part payment of the amount due to him, the balance to be settled in cash. B and C would increase their capitals by paying in £10,000 and £6,000 respectively. These changes were all carried out. Required:

(a) Prepare the revaluation account, bank account and capital accounts.

(b) Prepare the opening statement of financial position of B and C.

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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