Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Illustration 5 Hari Lal and Jay have been in partnership for a number of years, sharing profits fosses in the ratio of 2.2.1 as wholesale

image text in transcribed

Illustration 5 Hari Lal and Jay have been in partnership for a number of years, sharing profits fosses in the ratio of 2.2.1 as wholesale stationers trading under the name 'Hari Brothers. They decide to convert their partnership into a limited company (with effect from 1 January, 2013) to be known as Hari Ltd. 028 Bank Immediately prior to this conversion the balance sheet of partnership as at 31 December 2012 was as follows: Balance Sheet As on 31st December 2012 Liabilities Assets Capital accounts Fixed assets Hari 70,000 (at written down value) Lal 30,000 Land & Buildings 50,000 Jay 20.000 120.000 Plant & Machinery 30,000 Current accounts Motor vehicles 20.000 Hari 7.000 Current Assets Lal 5.000 Inventories 60.000 Jay 3.000 15,000 Debtors 25,000 Current liabilities Axis Bank account 5,000 Creditors 25,000 Dena Bank account 20,000 45.000 Long-term liabilities Loan-Hari 3,000 Loan-Gopi Ltd. 7.000 10,000 1,90,000 1,90,000 The terms of conversion are that Hari Ltd. is to take over the assets and liabilities of Hari Brothers as follows: Valuation for take-over

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

Internal Auditing Basics Video Learning Guide

Authors: Charles A. Cianfrani & John E. West, James P. Gildersleeve

1st Edition

1891578251, 978-1891578250

More Books

Students also viewed these Accounting questions

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago