Accountancy

A, B and C are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2019 is:

LiabilitiesAmount( Rs.)AssetsAmount( Rs.)Creditors30,000Cash in Hand18,000Bills Payable16,000Debtors - 25,000General Reserve12,000Less: Provision for Doubtful Debts - (3,000)22,000Capital A/c :Stock 18,000 A - 40,000Furniture30,000 B - 40,000Machinery70,000 C - 30,0001,10,000Goodwill10,000 1,68,000 1,68,000 B retires on 1st April, 2019 on the following terms:(a)…

Continue ReadingA, B and C are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2019 is:

X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. Y retires on 1st April, 2019 from the firm, on which date capitals of X, Y and Z after all adjustments are Rs. 1,03,680, Rs. 87,840 and Rs. 26,880 respectively. The Cash and Bank Balance on that date was Rs. 9,600. Y is to be paid through amount brought in by X and Z in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be X 3/5 and Z 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank balance of Rs. 7,200 was to be maintained and pass the necessary Journal entries.

SOLUTION Total capital of firm before retirement = 1,03,680+87,840+26,880 = Rs. 2,18,400Availability of cash = 9,600-7,200 (Minimum Balance) = Rs. 2,400Combined new capital of X and Z = Rs. 2,16,000 X's new capital = 2,16,000 × 3/5 = Rs. 1,29,600Existing capital of X = Rs. 1,03,680So, X has to bring = 1,29,600−1,03,680 = Rs. 25,920 Z's new capital = 2,16,000 × 2/5 = Rs. 86,400Existing capital of Z = Rs. 26,880 So, Z has to bring = 86,400−26,880 = Rs. 59,520  

Continue ReadingX, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. Y retires on 1st April, 2019 from the firm, on which date capitals of X, Y and Z after all adjustments are Rs. 1,03,680, Rs. 87,840 and Rs. 26,880 respectively. The Cash and Bank Balance on that date was Rs. 9,600. Y is to be paid through amount brought in by X and Z in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be X 3/5 and Z 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank balance of Rs. 7,200 was to be maintained and pass the necessary Journal entries.

Balance Sheet of X, Y and Z who shared profits in the ratio of 5 : 3 : 2, as on 31st March, 2019 was as follows:

Liabilities Amount (Rs.)AssetsAmount (Rs.)Sundry Creditors39,750Bank (Minimum Balance)15,000Employees' Provident Fund5,250Debtors97,500Workmen Compensation Reserve22,500Stock82,500Capital A/c :Fixed Assets1,87,500X - 1,65,000  Y - 84,000 Z - 66,0003,15,000  3,82,500 3,82,500 Y retired on 1st April, 2019 and it was agreed that:(i) Goodwill…

Continue ReadingBalance Sheet of X, Y and Z who shared profits in the ratio of 5 : 3 : 2, as on 31st March, 2019 was as follows:

X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 7. X retired from the firm. Y and Z decided to share future profits in the ratio of 2 : 3. The adjusted Capital Accounts of Y and Z showed balance of Rs. 49,500 and Rs. 1,05,750 respectively. The total amount to be paid to X is Rs. 1,35,750. This amount is to be paid by Y and Z in a manner that their capitals become proportionate to their new profit-sharing ratio. Calculate the amount to be brought in or to be paid to partners. 

SOLUTION New Capital = 49,500 + 1,05,750 + 1,35,750 = Rs. 2,91,000Y's New Capital = 2,91,000 × 2/5 = 1,16,400Z's New Capital = 2,91,000 × 3/5 = 1,74,600Y brings in Rs. 66,900 (1,16,400 – 49,500)Z brings in Rs. 68,850 (1,74,600…

Continue ReadingX, Y and Z are partners sharing profits in the ratio of 5 : 3 : 7. X retired from the firm. Y and Z decided to share future profits in the ratio of 2 : 3. The adjusted Capital Accounts of Y and Z showed balance of Rs. 49,500 and Rs. 1,05,750 respectively. The total amount to be paid to X is Rs. 1,35,750. This amount is to be paid by Y and Z in a manner that their capitals become proportionate to their new profit-sharing ratio. Calculate the amount to be brought in or to be paid to partners. 

J, H and K were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2015, their Balance Sheet was as follows:

LiabilitiesAmount( Rs.)AssetsAmount( Rs.)Creditors42,000Land and Building1,24,000Investment Fluctuation Fund20,000Motor Vans40,000Profit and Loss Account80,000Investments38,000Capital A/c :   Machinery24,000J - 1,00,000Stock30,000H - 80,000Debtors - 80,000 K - 40,0002,20,000Less: Provision - (6,000)74,000  Cash32,000 3,62,000 3,62,000 On the above date, H retired and J and K agreed to continue…

Continue ReadingJ, H and K were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2015, their Balance Sheet was as follows:

Amit, Balan and Chander were partners in a firm sharing profits in the proportion of 1/2, 1/3 and 1/6 respectively. Chander retired on 1st April, 2014. The Balance Sheet of the firm on the date of Chander’s retirement was as follows:

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Sundry Creditors12,600Bank4,100Provident Fund3,000Debtors - 30,000General Reserve9,000Less: Provision -(1,000)29,000Capital A/c :Stock25,000Amit - 40,000Investments10,000Balan - 36,500 Patents5,000Chander - 20,00096,500Machinery48,0001,21,1001,21,100 It was agreed that:(i) Goodwill will be valued at Rs. 27,000.(ii)…

Continue ReadingAmit, Balan and Chander were partners in a firm sharing profits in the proportion of 1/2, 1/3 and 1/6 respectively. Chander retired on 1st April, 2014. The Balance Sheet of the firm on the date of Chander’s retirement was as follows:

X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1st April, 2009, Y retires from the firm. X and Z agree that the capital of the new firm shall be fixed at Rs. 2,10,000 in the profit-sharing ratio. The Capital Accounts of X and Z after all adjustments on the date of retirement showed balance of Rs. 1,45,000 and Rs. 63,000 respectively. State the amount of actual cash to be brought in or to be paid to the partners.

SOLUTION

Continue ReadingX, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1st April, 2009, Y retires from the firm. X and Z agree that the capital of the new firm shall be fixed at Rs. 2,10,000 in the profit-sharing ratio. The Capital Accounts of X and Z after all adjustments on the date of retirement showed balance of Rs. 1,45,000 and Rs. 63,000 respectively. State the amount of actual cash to be brought in or to be paid to the partners.

X, Y and Z were in partnership sharing profits and losses equally. ‘Y’ retires from the firm. After adjustments, his Capital Account shows a  credit balance of Rs. 3,00,000 as on 1st April, 2016. Balance due to ‘Y’ is to be paid in three equal annual instalments along with interest @ 10% p.a. Prepare Y’s Loan Account until he is paid the amount due to him. The firm closes its books on 31st March every year.

SOLUTION

Continue ReadingX, Y and Z were in partnership sharing profits and losses equally. ‘Y’ retires from the firm. After adjustments, his Capital Account shows a  credit balance of Rs. 3,00,000 as on 1st April, 2016. Balance due to ‘Y’ is to be paid in three equal annual instalments along with interest @ 10% p.a. Prepare Y’s Loan Account until he is paid the amount due to him. The firm closes its books on 31st March every year.

X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1. Balance Sheet of the firm as at 31st March, 2019 was as follows:

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)Creditors21,000Cash at Bank5,750Workmen Compensation Reserve12,000Debtors - 40,000Investments Fluctuation Reserve6,000Less: Provision for Doubtful Debts - (2,000)38,000Capital A/c :Stock 30,000X - 68,000Investment (Market Value  Rs. 17,600)15,000Y - 32,000Patents10,000Z - 21,0001,21,000Machinery50,000 Goodwill6,000 Advertisement Expenditure5,250 1,60,000 1,60,000  Z retired on…

Continue ReadingX, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1. Balance Sheet of the firm as at 31st March, 2019 was as follows: