Accountancy

Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2019, their Balance Sheet was:

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Creditors50,000Cash 60,000Bank Loan35,000Debtors75,000Employees' Provident Fund15,000Stock40,000Investments Fluctuation Reserve10,000Investments20,000Commission Received in Advance8,000Plant50,000Capital A/c : Profit and Loss A/c3,000Anju 50,000  Manju 50,000  Sanju 30,0001,30,000  2,48,000 2,48,000 On this date, the firm was dissolved. Anju was appointed to realise the assets. Anju was to receive 5%…

Continue ReadingAnju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2019, their Balance Sheet was:

Following is the Balance Sheet of Arvind and Balbir as at 31st March, 2019:

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)Trade Creditors45,000Cash750Bills Payable12,000Bank12,000MR. Arvind's Loan7,500Stock7,500MR. Balbir's  Loan15,000Investments15,000Reserve Fund15,000Book Debts 30,000 Investments Fluctuation  Reserve1,500Less: Provision for Doubtful Debts (3,000)27,000Capital A/c : Building 22,500Arvind 15,000 Plant30,000Balbir 15,00030,000Goodwill6,000   Profit and Loss A/c5,250 1,26,000 1,26,000 The firm was dissolved on the…

Continue ReadingFollowing is the Balance Sheet of Arvind and Balbir as at 31st March, 2019:

Rita and Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2019, the Balance Sheet of the firm was:

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Sundry Creditors75,000Cash6,000Bills Payable30,000Bank30,000Rita's Loan15,000Stock75,000Reserve      24,000Book Debts 66,000Capital A/c :     Less: Provision for Doubtful Debts (6,000)60,000Rita 90,000Plant and Machinery  45,000Sobha 30,0001,20,000Land and Building48,000    2,64,000  2,64,000 The firm was dissolved on the date given above.…

Continue ReadingRita and Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2019, the Balance Sheet of the firm was:

X, Y and Z carrying on business as merchants and sharing profits and losses in the ratio of 2 : 2 : 1, dissolved their firm as at 31st March, 2019 on which date their Balance Sheet was as follows:

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Sundry Creditors      41,500Cash at Bank22,500Bills Payable20,000Stock80,000Bank Loan         40,000Debtors 50,000General Reserve50,000Less: Provision for Doubtful Debts (2,500)47,500Investments Fluctuation Reserve   40,000Investments55,000Capital A/c : Premises1,51,500 X 75,000   Y 75,000   Z 25,0001,75,000    3,66,500 3,56,500   A bill for Rs. 5,000 received from Mohan…

Continue ReadingX, Y and Z carrying on business as merchants and sharing profits and losses in the ratio of 2 : 2 : 1, dissolved their firm as at 31st March, 2019 on which date their Balance Sheet was as follows:

Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the 31st March, 2019 when the Balance Sheet of the firm as under:

LiabilitiesAmount( Rs.)AssetsAmount( Rs.)SundryCreditors      20,000Bank7,500Bills Payable25,500Sundry Debtors58,000Babu's Loan         30,000Stock 39,500Capital A/cs: Machinery48,000Ashok 70,000 Investments42,000Babu 55,000 Freehold Property50,500Chetan 27,000 1,52,000 Current A/c :                 Ashok 10,000  Babu 5,000  Chetan 3,00018,000       2,45,500  2,45,500 The Machinery was taken over by Babu for Rs. 45,000, Ashok took over the…

Continue ReadingAshok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the 31st March, 2019 when the Balance Sheet of the firm as under:

A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet was:

LiabilitiesAmount( Rs.)AssetsAmount( Rs.)Bank Overdraft30,000Cash in Hand6,000General Reserve56,000Bank Balance10,000Investments Fluctuation Reserve           20,000Sundry Debtors 26,000A's Loan34,000Less: Provision for Doubtful Debtors (2,000)24,000Capital A/c:Investments40,000A 50,000  Stock10,000  Furniture 10,000  Building 60,000  B's Capital 30,000 1,90,000 1,90,000 On that date, the partners decide to dissolve the…

Continue ReadingA and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet was:

A, B and C are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st March, 2019, they decided to dissolve the partnership and the position of the firm on this date is represented by the following Balance Sheet:

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Creditors40,000Cash at Bank3,000Loan A/c: Stock50,000A10,000Sundry Debtors50,000Workmen Compensation Reserve21,000Land and Building57,000Capital A/c : Profit and Loss A/c15,000 A  60,000 Advertisement Suspense A/c6,000 B 40,000   C 10,0001,10,000  1,81,000 1,81,000 During the course of realisation, a liability under a suit for damages is…

Continue ReadingA, B and C are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st March, 2019, they decided to dissolve the partnership and the position of the firm on this date is represented by the following Balance Sheet:

Yogesh and Naresh were partners sharing profits equally. They dissolved the firm on 1st April, 2019. Naresh was assigned the responsibility to realise the assets and pay the liabilities at a remuneration of Rs. 10,000 including expenses. Balance Sheet of the firm as on that date was as follows:

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)Creditors40,000Cash/Bank6,000Bills Payable40,000Investments30,000Naresh's Loan44,000Debtors 40,000Yogesh's Loan42,000Less: Provision for Doubtful Debts (4,000)36,000Investment Fluctuation Reserve 8,000Bills Receivable33,400Capital A/c :  Profit and Loss A/c1,10,600Yogesh 21,000  Naresh 21,00042,000      2,16,000 2,16,000 The firm was dissolved on following terms:(a) Yogesh was to pay his…

Continue ReadingYogesh and Naresh were partners sharing profits equally. They dissolved the firm on 1st April, 2019. Naresh was assigned the responsibility to realise the assets and pay the liabilities at a remuneration of Rs. 10,000 including expenses. Balance Sheet of the firm as on that date was as follows:

A, B and C were equal partners. On 31st March, 2019, their Balance Sheet stood as:

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Creditors50,400Cash3,700Reserve12,000Stock20,100Capital A/cs: Debtors62,600   A  40,000 Loan to A10,000   B 25,000 Investments16,000   C 15,00080,000Furniture6,500   Building23,500 1,42,400 1,42,400    The firm was dissolved on the above date on the following terms:(a) For the purpose of dissolution, Investments were valued at…

Continue ReadingA, B and C were equal partners. On 31st March, 2019, their Balance Sheet stood as: