Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Thursday enterprise is a partnership firm in which Baqir, Basit and Bazid are partners sharing profits or losses equally. Each partner's capital was as

Question

Thursday enterprise is a partnership firm in which Baqir, Basit and Bazid are partners sharing profits or losses equally.

Each partner's capital was as follows on 31 December 2019:

BaqirRs.80,000

BasitRs.60,000

BazidRs.75,000

Bazid decided to retire on 31 December 2019. He will be paid Rs. 50,000 in cash and will leave the remaining amount as a loan to the continuing partnership of Baqir and Basit.

Goodwill of the partnership was agreed to be Rs.60,000 on 31 December 2019.

After Bazid leave, Baqir and Basit will share profit equally.

According to the accounting policy of partnership goodwill is not reported in financial statements.

Required:

Prepare capital account of each partner on 31 December 2019.

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

Step: 3

blur-text-image

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

Fundamental Managerial Accounting Concepts

Authors: Edmonds, Tsay, olds

6th Edition

71220720, 78110890, 9780071220729, 978-0078110894

More Books

Students also viewed these Accounting questions

Question

What do the FASBs Concepts Statements establish?

Answered: 1 week ago

Question

8. How can an interpreter influence the message?

Answered: 1 week ago