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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)

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