Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q.9 Ruwi Autos LLC is running a partnership business last 20 years. ASR good reputation in sultanate of Oman. ASR dealing auto parts, mobile oil

Q.9 Ruwi Autos LLC is running a partnership business last 20 years. ASR good reputation in sultanate of Oman. ASR dealing auto parts, mobile oil and auto repair and maintenance. Last few years overall economic growth and oil prices continue decreasing and due to that reason firm continue running losses. A long discussion the partners decided to dissolve the firm. The partners are Abdullah, Iqbal, Samar, and Rahil sharing profit and losses in the ratio of 6:5:4:3. The closing balances of assets, liabilities and capitals as on 31st December,2019 was given below. Name of Accounts OMR Name of Accounts OMR Cash at Bank 248,630 Notes Payable 405,216 Accounts Receivable 884,873 Sundry Creditors 230,738 Inventory 470,635 Abdullah Capital 3,546,900 Furniture 1,327,523 Iqbal Capital 1,518,300 Plant and Machinery 2,387,776 Samar Capital 2,419,200 Building 1,609,020 Rahil Capital 3,150,000 Workshop Equipment 1,323,252 Profit & Loss A/c 425,880 Land 5,040,000 General Reserve A/c 955,080 Unpaid expenses 640,395 They decided to dissolve the firms. The following term amounts were realized: Plant and Machinery and furniture are realized 15% less of total cost, Accounts Receivable realized OMR750,000, Inventory were sold OMR405,000,Sundry Creditors paid at 5% discounts, Land to be appreciated by 15%.Rahil are agreeing to take Building and Workshop equipment OMR. 1,700,000 and OMR 1,250,000, respectively Note payable are paid 85% of total value of bill and Unpaid expenses were paid full amount. You are required a. To pass necessary Journal entries (2 Marks) b. To prepare Realization Account, Bank Accounts and Partners Capital Account..

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_2

Step: 3

blur-text-image_3

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

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

More Books

Students also viewed these Accounting questions

Question

=+What types of evidence are used? Is the reasoning sound?

Answered: 1 week ago