Question
Following information use in Question NO.6 The following is the information about assets and liabilities of M/s. Hanish LLC and its partners A, B and
Following information use in Question NO.6
The following is the information about assets and liabilities of M/s. Hanish LLC and its partners A, B and C. They are sharing profits 9:6:3 with total capital of OMR 169,000 as on 31.3.2020.
Particular | OMR | Particular | OMR |
Cash | 58,500 | Bank Loan | 52,000 |
Sundry Debtors | 91,000 | Bonds | 65,000 |
Stock | 32,500 | Bills Payable | 104,000 |
Machinery | 52,000 | Sundry Creditors | 130,000 |
Land | 91,000 | Bank Overdraft | 32,500 |
Furniture | 32,500 | Plant | 78,000 |
Premises | 52,000 | Profit & Loss A/C | 32,500 |
Building | 130,000 | Bill Receivable | 32,500 |
The capital contributed by the partners is OMR 78,000, OMR 52,000, and OMR 39,000 respectively. The firm accumulated its past profits in the name General Reserve is OMR 65,000. On 1.4.2020 they decided to admit D into the partnership for 1/5th of the future profits with the terms that D shall bring in a capital of OMR 65,000.
Goodwill of the firm is being valued at OMR 52,000. The assets like Machinery, Land, Buildings and Plant are to be appreciated by 10% and Stock, Furniture, Premises are to be depreciated by 5%.
The Provision for Doubtful Debts against Sundry Debtors is to be made @ 5%. Discount on Creditors @ 2.5% received from Sundry Creditors. The Provision for outstanding liability is to be created at OMR 5,200 and Bank Loan is to be maintained
Q6.
Prepare Partners Capital Accounts and Balance Sheet of the reconstituted partnership firm.
Give your views about the changes in the balance sheet after reconstitution. (2+2+1 = 5 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started