on Solve the following MCQS by joumalising the transactions and by preparing Revaluation account, Capital Accounts and the Balance Sheet of the reconstituted firm. Mr. Adeel and Mr. Zaheer are partners sharing profits and losses in the ratio of 43. Their Balance sheet as on 31st March 2020 is as follows. Balance Sheet Liabilities RO Assets RO Capital Accounts: Cash in hand 10,000 Mr. Adeel A/C 160,000 Cash at Bank 24,000 Mr. Zaheer A/C 80,000 Stock 60,000 General Reserve 80,000 Plant & Machinery 50,000 Sundry Creditors 180,000 Land & Buildings 200,000 Accounts Payable 140,000 Furniture 16,000 Tools & Equipment 40,000 Accounts Receivable 80,000 Sundry Debtors 140,000 Profit & Loss A/C 20,000 Total 640,000 Total 640,000 On 1st April 2020, they agreed to admit Mr. Azar into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at RO 240,000 b) Stock is revalued at RO 43,000 c) Goodwill is raised at RO 80,000 d) Provision for bad debts is made at 7.5% e) Provision for Outstanding Liability is to be created @ RO 4,000 f) Mr. Azar is to bring in a Capital of RO 100,000 but he was unable to bring the amount of Goodwill. The correct journal for distribution of general reserve to partners is O a. Debit: Mr. Adeels Capital A/c RO 45,714 and Mr. Zaheer s Capital A/c RO 34,286 and Credit: General Reserve A/c RO 80,000 O b. Debit: Mr. Adeels Capital A/c RO 34,286 and Mr. Zaheer s Capital A/C RO 45,714 and Credit: General Reserve A/c RO 80,000 O c. Debit: General Reserve A/C RO 80,000 and Credit: Mr. Adeels Capital A/c RO 34,286 and Mr. Zaheers Capital A/c RO 45,714 O d. Debit: General Reserve A/c RO 80,000 and Credit: Mr. Adeels Capital A/c RO 45,714 and Mr. Zaheers Capital A/c RO 34,286 The correct journal for distribution of revaluation profit to Mr. Adeel is a. Debit: Mr. Adeels Capital A/c RO 4,857 and Credit: Revaluation A/c RO 4,857 O b. Debit: Revaluation A/c RO 8,500 and Credit: Mr. Adeel s Capital A/c RO 8,500 O c. Debit: Mr. Adeel s Capital A/C RO 8,500 and Credit: Revaluation A/c RO 8,500 O d. Debit: Revaluation A/c RO 4,857 and Credit: Mr. Adeel s Capital A/c RO 4,857 18 The amount of closing capital for Mr. Azar is ut of a. RO 84,000 O b. RO 408,500 C. RO 208,284 O d. RO 116,215 estion 9 The profit and loss account of this case distributed to the partners for the following account of O a. Debit side of the partners capital account O b. Credit side of the partners capital account O c. Assets side of the balance sheet O d. Liabilities side of the balance sheet tion or the balance sheet The amount of closing value of stock is O a. RO 60,000 O b. RO 77,000 O c. RO 17,000 O d. RO 43,000 an > Jump to... News