Notice: please should the amount in Omani rials 1 Sohnn, Rajan and Viswa are in business in Partnership as Computer Manufacturers. They share Profits as 4:3:3 after allowing for interest at 6% on the balances of their capital accounts at the beginning of each year and after charging Partners salaries at the rate of RO 650; RO 530; RO 470 per month respectively. They employ a sales manager who is paid a salary of RO 4,800 per annum plus two percent commission on total sales. The following Balances was extracted on 31 December 2020. Capital Accounts Sohan 23,200 Rajan 13,600 Viswa 12,800 Cash in hand 6.440 Purchase of Raw Material 300,000 Commission Dr. 13,600 Insurance 9.240 Sundry Creditors 25,200 Factory Expenses 38,000 Rent 2.400 Sundry Debtors 12,800 Furniture 6,400 Electricity Expenses 600 520,000 Opening stock of Raw Material 23,600 Carriage inwards 96,000 Salaries including sales manager 14,400 salary Repairs to Buildings 800 Bad debts 3.200 Carriage Outwards 3.600 Equipment 5,200 Drawings Sohan 9,600 Rajan 8,800 Viswa 8,400 Discount Received 4.800 Vehicle running expenses 4,400 Travelling expenses 5,600 Advertising Expenses 7,320 Machinery 19,200 Additional Information Sales 1. Closing stock was valued at RO 33,680 2. The Following expenses were outstanding Rent RO 720, Electricity RO 200 3. Depreciation to be provided at the following rates Equipment 20% Machinery 10% and Furniture 12.5% 4. Provision for Doubtful Debts 3% 3. X, Y and Z were partners, sharing profits in the ratio of 10:7:3 Liabilities Assets Creditors General Reserves Capital Amount (RO) 40,000 20,000 Amount (RO) 20,000 30,000 NX 80,000 60,000 20,000 Cash Debtors 30,600 Less: Provision 70,000 600 60,000 Stock 40,000 Fixed Assets Buildings 220,000 Z retires on that date subject to the following conditions: 220,000 a. Fixed assets are to be depreciated by 20% except buildings worth RO 40,000 (book value) which is to be valued at RO 60,000 b. RO 600 to be written off as bad debts and provision for doubtful debts to be done at 4% on debtors. c. That the goodwill of the firm to be valued at RO 32,000 retirement d. Liability for outstanding expenses RO 4,000 to be provided e Office equipment of RO 8,000 was to be brought into books on the date of f. It was agreed that A and B will share profits equally in future. Pass necessary Journal entries and prepare necessary accounts by transferring Q's share of Capital to his loan account. Notice: please should the amount in Omani rials 2. A and B are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on 31st March 2020 was as follows: Balance Sheet Liabilities Assets Amount (RO) Amount (RO) 37,500 4,000 Cash Creditors General Reserves Capital A B Bills Receivable Debtors Stock Furniture 30,000 16,000 22,500 3,000 16,000 20,000 1,000 25,000 87,500 Building 87,500 Notice: please On 1st April 2020 they admit C on the following terms: should the amount a. That C pays RO 10,000 as his capital for one fifth share in profits in Omani rials b. That Goodwill already appears in the books for RO 20,000 c. That stock and furniture be reduced by 10% and a provision of 5% be made for doubtful debts. d. That the value of building be appreciated by 20% Record Necessary Journal Entries and Prepare Revaluation accounts, partners' capital accounts and Balance sheet of the new firm. Notice: please should the amount in Omani rials 1 Sohnn, Rajan and Viswa are in business in Partnership as Computer Manufacturers. They share Profits as 4:3:3 after allowing for interest at 6% on the balances of their capital accounts at the beginning of each year and after charging Partners salaries at the rate of RO 650; RO 530; RO 470 per month respectively. They employ a sales manager who is paid a salary of RO 4,800 per annum plus two percent commission on total sales. The following Balances was extracted on 31 December 2020. Capital Accounts Sohan 23,200 Rajan 13,600 Viswa 12,800 Cash in hand 6.440 Purchase of Raw Material 300,000 Commission Dr. 13,600 Insurance 9.240 Sundry Creditors 25,200 Factory Expenses 38,000 Rent 2.400 Sundry Debtors 12,800 Furniture 6,400 Electricity Expenses 600 520,000 Opening stock of Raw Material 23,600 Carriage inwards 96,000 Salaries including sales manager 14,400 salary Repairs to Buildings 800 Bad debts 3.200 Carriage Outwards 3.600 Equipment 5,200 Drawings Sohan 9,600 Rajan 8,800 Viswa 8,400 Discount Received 4.800 Vehicle running expenses 4,400 Travelling expenses 5,600 Advertising Expenses 7,320 Machinery 19,200 Additional Information Sales 1. Closing stock was valued at RO 33,680 2. The Following expenses were outstanding Rent RO 720, Electricity RO 200 3. Depreciation to be provided at the following rates Equipment 20% Machinery 10% and Furniture 12.5% 4. Provision for Doubtful Debts 3% 3. X, Y and Z were partners, sharing profits in the ratio of 10:7:3 Liabilities Assets Creditors General Reserves Capital Amount (RO) 40,000 20,000 Amount (RO) 20,000 30,000 NX 80,000 60,000 20,000 Cash Debtors 30,600 Less: Provision 70,000 600 60,000 Stock 40,000 Fixed Assets Buildings 220,000 Z retires on that date subject to the following conditions: 220,000 a. Fixed assets are to be depreciated by 20% except buildings worth RO 40,000 (book value) which is to be valued at RO 60,000 b. RO 600 to be written off as bad debts and provision for doubtful debts to be done at 4% on debtors. c. That the goodwill of the firm to be valued at RO 32,000 retirement d. Liability for outstanding expenses RO 4,000 to be provided e Office equipment of RO 8,000 was to be brought into books on the date of f. It was agreed that A and B will share profits equally in future. Pass necessary Journal entries and prepare necessary accounts by transferring Q's share of Capital to his loan account. Notice: please should the amount in Omani rials 2. A and B are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on 31st March 2020 was as follows: Balance Sheet Liabilities Assets Amount (RO) Amount (RO) 37,500 4,000 Cash Creditors General Reserves Capital A B Bills Receivable Debtors Stock Furniture 30,000 16,000 22,500 3,000 16,000 20,000 1,000 25,000 87,500 Building 87,500 Notice: please On 1st April 2020 they admit C on the following terms: should the amount a. That C pays RO 10,000 as his capital for one fifth share in profits in Omani rials b. That Goodwill already appears in the books for RO 20,000 c. That stock and furniture be reduced by 10% and a provision of 5% be made for doubtful debts. d. That the value of building be appreciated by 20% Record Necessary Journal Entries and Prepare Revaluation accounts, partners' capital accounts and Balance sheet of the new firm