Q1

Q2

QUESTION 1 (4 Marks) A and B were partners in a firm sharing profits and losses in the ratio of 3.2. On 1st April 2020 their Balance Sheet was as follows: Balance Sheet of A&B (as on 1st April 2020) OMR OMR Cash 70,000 Debtors 200,000 Less: Provision (10,000) 190,000 Stock Furniture Buildings Land 220,000 120,000 300,000 400.000 1 300.000 120,000 180,000 120,000 Creditors Bills Payable General Reserve Capitals: B 500,000 380,000 880.000 1.300.000 On 15 April 2020 they decided to admit C into partnership giving him 1/5th share. He brings in OMR as his share of capital and OMR as his goodwill. The partners decided to revalue the assets as follows 0 Land was to be appreciated by _% and Buildings was to be depreciated by OMR (0) Furniture value was to be reduced by OMR Provision for bad debts is to be increased to OMR Required: (a) You are required to show all the ledger accounts necessary to record the revaluation (b) Draw up a balance sheet as at 1 April 2020 QUESTION 2 (4 Marks) A, B and C were partners in a firm sharing profits and losses according to their Capital. On 1 April 2020 their Balance Sheet was as follows: Balance Sheet of A, B and C (as on 1st April 2020) OMR OMR Cash 28,000 Debtors 40,000 Less: Provision (2,000) 38,000 Stock 36,000 Machinery 100,000 Buildings 200.000 402.000 42,000 40,000 Creditors General Reserve Capitals A B 000> 160,000 80,000 80,000 320,000 402.000 On the above date B retired and following was agreed: 0 Buildings to be appreciated by % (0) Provision for bad debts to be increased to % on debtors (111) Machinery to be depreciated by % (iv) Goodwill of the firm valued at OMR (V) % of the amount payable to B was paid in Cash and balance was transferred to her Loan Account Required: (a) You are required to show all the ledger accounts necessary to record the revaluation (b) Draw up a balance sheet as at 1 April 2020 Question 3 (2 Marks) Briefly describe the rules and laws governing partnership business in the Sultanate of Oman