Accountancy

Following is the Balance Sheet of X, Y and Z as at 31st March, 2019. They shared profits in the ratio of 3 : 3 : 2:

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)Sundry Creditors2,50,000Cash at Bank50,000General Reserve80,000Bills Receivable60,000Partners’ Loan A/c : Debtors - 80,000X - 50,000Less: Provision for Doubtful Debts - (4,000)76,000Y - 40,00090000Stock 1,24,000Capital A/c :Fixed Assets 3,00,000X1,00,000Advertisement Suspense A/c16,000Y60,000Profit and…

Continue ReadingFollowing is the Balance Sheet of X, Y and Z as at 31st March, 2019. They shared profits in the ratio of 3 : 3 : 2:

A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 3. Their Balance Sheet as at 31st March, 2019 is :

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)Creditors7,000Land and Building36,000Bills Payable3,000Plant and Machinery28,000Reserves20,000Computer Printer8,000Capital A/c :Stock20,000A - 32,000Sundry Debtors - 14,000B - 24,000Less: Provision for Doubtful Debts - (2,000)12,000C - 20,00076,000Bank2,000 1,06,000 1,06,000 On 1st April, 2019, B retired…

Continue ReadingA, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 3. Their Balance Sheet as at 31st March, 2019 is :

Pankaj, Naresh and Saurabh are partners sharing profits in the ratio of 3 : 2 : 1. On 1st April, 2019, Naresh retired on that date, Balance Sheet of the firm was as follows:  

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)General Reserve12,000Bank7,600Sundry Creditors15,000Debtors - 6,000Bills Payable12,000Less: Provision for Doubtful Debts -(400)5,600Outstanding Salary2,200Stock 9,000Provision for Legal Damages6,000Furniture 41,000Capital A/c :Premises 80,000Pankaj - 46,000 Naresh - 30,000 Saurabh -20,00096,000  1,43,200 1,43,200 Additional Information:(a) Premises have appreciated by…

Continue ReadingPankaj, Naresh and Saurabh are partners sharing profits in the ratio of 3 : 2 : 1. On 1st April, 2019, Naresh retired on that date, Balance Sheet of the firm was as follows:  

X, Y and Z were in partnership sharing profits and losses in the proportions of 3 : 2 : 1. On 1st April, 2019, Y retired from the firm. On that date, their Balance Sheet was:

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Trade Creditors30,000Cash in Hand15,000Bills Payable45,000Cash at Bank75,000Expenses Owing45,000Debtors1,50,000General Reserve1,35,000Stock1,20,000Capital A/c :  Factory Premises    2,25,000X - 1,50,000Machinery80,000Y- 1,50,000Loose Tools40,000Z - 1,50,0004,50,000  7,05,000 7,05,000 The terms were:(a) Goodwill of the firm was valued at Rs. 1,35,000 and adjustment…

Continue ReadingX, Y and Z were in partnership sharing profits and losses in the proportions of 3 : 2 : 1. On 1st April, 2019, Y retired from the firm. On that date, their Balance Sheet was:

N, S and G were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2016 their Balance Sheet was as under:

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)Creditors1,65,000Cash1,20,000General Reserve90,000Debtors - 1,35,000Capital A/c :Less: Provision - (15,000)1,20,000 N - 2,25,000Stock1,50,000 S - 3,75,000Machinery4,50,000 G - 4,50,00010,50,000Patents90,000  Building3,00,000  Profit and Loss Account75,000 13,05,000 13,05,000 G retired on the above date and it was agreed that:(a)…

Continue ReadingN, S and G were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2016 their Balance Sheet was as under:

X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2019 was:

LiabilitiesAmount( Rs.)AssetsAmount ( Rs.)Creditors49,000Cash8,000Reserve18,500Debtors 19,000Capital A/c :Stock42,000X - 82,000Building2,07,000Y - 60,000Patents9,000Z - 75,5002,17,500 2,85,0002,85,000 Y retired on 1st April, 2019 on the following terms:(a) Goodwill of the firm was valued at Rs. 70,000 and was not to appear in…

Continue ReadingX, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2019 was:

Partnership Deed of C and D, who are equal partners, has a clause that any partner may retire from the firm on the following terms by giving a six-month notice in writing: The retiring partner shall be paid − (a) the amount standing to the credit of his Capital Account and Current Account. (b) his share of profit to the date of retirement, calculated on the basis of the average profit of the three preceding completed years. (c) half the amount of the goodwill of the firm calculated at 11/2 times the average profit of the three preceding completed years. C gave a notice on 31st March, 2017 to retire on 30th September, 2017, when the balance of his Capital Account was Rs. 6,000 and his Current Account (Dr.) Rs. 500. Profits for the three preceding completed years ended 31st March, were: 2015 − Rs. 2,800; 2016 − Rs. 2,200 and 2017 − Rs. 1,600. What amount is due to C as per the partnership agreement? 

SOLUTION

Continue ReadingPartnership Deed of C and D, who are equal partners, has a clause that any partner may retire from the firm on the following terms by giving a six-month notice in writing: The retiring partner shall be paid − (a) the amount standing to the credit of his Capital Account and Current Account. (b) his share of profit to the date of retirement, calculated on the basis of the average profit of the three preceding completed years. (c) half the amount of the goodwill of the firm calculated at 11/2 times the average profit of the three preceding completed years. C gave a notice on 31st March, 2017 to retire on 30th September, 2017, when the balance of his Capital Account was Rs. 6,000 and his Current Account (Dr.) Rs. 500. Profits for the three preceding completed years ended 31st March, were: 2015 − Rs. 2,800; 2016 − Rs. 2,200 and 2017 − Rs. 1,600. What amount is due to C as per the partnership agreement? 

Ram, Laxman and Bharat are partners sharing profits in the ratio of 3: 2: 1. Goodwill is appearing in the books at a value of Rs. 1,80,000. Laxman retires and at the time of his retirement, goodwill is valued at Rs. 2,52,000. Ram and Bharat decided to share future profits in the ratio of 2 : 1. The Profit for the first year after Laxman’s retirement amount to Rs. 1,20,000. Give the necessary Journal entries to record goodwill  and to distribute the profit. Show your calculations clearly. 

SOLUTION

Continue ReadingRam, Laxman and Bharat are partners sharing profits in the ratio of 3: 2: 1. Goodwill is appearing in the books at a value of Rs. 1,80,000. Laxman retires and at the time of his retirement, goodwill is valued at Rs. 2,52,000. Ram and Bharat decided to share future profits in the ratio of 2 : 1. The Profit for the first year after Laxman’s retirement amount to Rs. 1,20,000. Give the necessary Journal entries to record goodwill  and to distribute the profit. Show your calculations clearly. 

Asha, Naveen and Shalini were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at a value of Rs. 80,000 and General Reserve at Rs. 40,000. Naveen decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at Rs. 1,20,000. The new profit-sharing ratio decided among Asha and Shalini is 2 : 3. Record necessary Journal entries on Naveen’s retirement.

SOLUTION

Continue ReadingAsha, Naveen and Shalini were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at a value of Rs. 80,000 and General Reserve at Rs. 40,000. Naveen decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at Rs. 1,20,000. The new profit-sharing ratio decided among Asha and Shalini is 2 : 3. Record necessary Journal entries on Naveen’s retirement.