Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is the Balance sheet of Amar and Ahlam who share profits in the ratio 3:2 On that date Ameera is admitted into the partnership

image text in transcribed

Following is the Balance sheet of Amar and Ahlam who share profits in the ratio 3:2 On that date Ameera is admitted into the partnership on the following terms: - Ameera is to bring in OMR 15,000 as capital and OMR 5,000 as premium for goodwill for 1/6th share - The value of stock is to be reduced by 10% while plant and machinery is appreciated by 10% - Furniture is revalued at OMR 9,000 - A provision for doubtful debts is to be created on sundry debtors at 5% and OMR 200 is to be provided for an electricity bill - Investment worth OMR 1000 not mentioned in the Balance sheet is to be taken into account. - A creditor of OMR 100 is not likely to claim his money and is to be written off Prepare all the necessary accounts \& calculate the new profit sharing ratio and the sacrificing ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making Wileyplus Lms Student Package

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

8th Edition

1119390249, 978-1119390244

More Books

Students also viewed these Accounting questions