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please answer with full detailed calculations, otherwise I will downvote. If u don't know, skip the question. it's total information there only. Problem 16: A
please answer with full detailed calculations, otherwise I will downvote. If u don't know, skip the question.
it's total information there only.
Problem 16: A and B were carrying on business sharing profits and losses equally. The firm's Balance Sheet as at 31.12.2011 was: Liabilities Amount (Rs.) Assets Amount (Rs.) Sundry Creditors 60,000 Stock 60,000 Bank overdraft 35,000 Machinery 1,50,000 Capital Alc's: Debtors 70,000 A 1,40,000 Joint Life Policy 9,000 B 1.30.000 2,70,000 Leasehold Premises 34,000 Profit & Loss A/C 26,000 Drawings Accounts: A 10,000 B 6,000 16,000 3,65,000 3,65,000 The business was carried on till 30.6.2012. The partners withdrew in equal amounts half the amount of profits made during the period of six months after charging depreciation at 10%p.a) on machinery and after writing off 5% En leasehold premises. In the half year, sundry creditors were reduced by Rs. 10,000 and bank overdraft by Rs. 15,000. On 30.6.2012, stock was valued at Rs.75,000 and Debtors at Rs.60,000; the Joint Life Policy had been surrendered for Rs.9.000 before 30.6.2012 and other items remained the same as at 31.12.2011 On 30.6.2012, the firm sold the business to a Limited Company. The value of goodwill was fixed at Rs.1,00,000 and the rest of the assets were valued on the basis of the Balance Sheet as at 30.6.2012. The company paid the purchase consideration in Equity Shares of Rs. 10 each. You are required to prepare: (a) Balance Sheet of the firm as at 30.6.2012; (b) The Realisation Account; (c) Partners' Capital Accounts showing the final settlement between them. (SM) Inl of balance sheet is 309.800. Total of Realisation Alc is 4,09,800Step by Step Solution
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