Hughes, Allen and Elliott

The above partners have always shared profits and losses in the ratio: Hughes 5, Allen 3, Elliott 2.
From 1 January the assets were to be revalued as the profit sharing ratios are to be altered soon.
The following assets are to be revalued to the figures shown: Buildings £17,500, Motor vehicles £2,600, Stock £1,890, Office fittings £1,090.
Required:

(a) You are required to show all the ledger accounts necessary to record the revaluation.

(b) Draw up a balance sheet as at 1 January 20X9.

Transcribed Image Text:

Balance Sheet as at 31 December 20X8 Buildings at cost Motor vehicles (at cost less depreciation) Office fittings (at cost less depreciation) Stock Debtors Bank Capitals: Hughes Allen Elliott 8,000 3,550 1,310 12,860 2,040 4,530 1,390 7,960 20,820 9,560 6,420 4,840 20,820