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QUESTION 23. * X, Y; and Z were in partnership sharing profits or losses as follows; X 0.35 and Z 0.25 Statement of financial position as at 31/12/2011 TZS “O00" Non current assets 37,500 26,000 63,500 Premises Plant & Machinery ( note 1) Current assets 21,000 14,000 33,500 68,500 132,000 Inventory Debtors Bank Total assets Capital and liabilities Capital accounts 45,000 2500 15,000 85,000 Current accounts 6,000 4,000 Y 3,000 Loan: Y 15,000 19,000 47,000 Creditors Total capitals and liabilities 132,000 Y retired on 31/12/2011 and X and Z continues in partnership sharing or losses 0.6 and 0.4 respectively. Half of Y S loan was repaid on 1/1/2012 and it was also agreed that TZS 40,000,000 of the balance remaining due to him should remain as a loan to the partnership It was also agreed that adjustments were to made to the statement of financial position on 31/12/2011 in respect of the following. y a) Plan & machinery was revalued at TZS 29,000,000 and premise also revalued at TZS 46,000,000 b) Debtors figure above is after deduction of provision on debtors amounted to TZS 3,000,000. This provision is to be increased by TZS 600,000. c) Creditors for general expenses amounted to TZS 2,500,000 were omitted from the books. d) TZS 2,000,000 was to be written off in stock in respect of obsolete items included there in. v e) Provision for TZS 800,000 was to be met for professional charges connected with revaluation account. The partnership agreed that on the retirement of Y, goodwill was valued at TZS 40,000,000. No account was to be maintained in the books but adjusting entries between partners are to be made on their capital accounts. Required: Prepare Partner's capital account. Partner's current account in columnar form. Y's Loan account. Statement of Financial Position after Y's retired. a) b) c) d)

QUESTION 23. * X, Y; and Z were in partnership sharing profits or losses as follows; X 0.35 and Z 0.25 Statement of financial position as at 31/12/2011 TZS “O00" Non current assets 37,500 26,000 63,500 Premises Plant & Machinery ( note 1) Current assets 21,000 14,000 33,500 68,500 132,000 Inventory Debtors Bank Total assets Capital and liabilities Capital accounts 45,000 2500 15,000 85,000 Current accounts 6,000 4,000 Y 3,000 Loan: Y 15,000 19,000 47,000 Creditors Total capitals and liabilities 132,000 Y retired on 31/12/2011 and X and Z continues in partnership sharing or losses 0.6 and 0.4 respectively. Half of Y S loan was repaid on 1/1/2012 and it was also agreed that TZS 40,000,000 of the balance remaining due to him should remain as a loan to the partnership It was also agreed that adjustments were to made to the statement of financial position on 31/12/2011 in respect of the following. y a) Plan & machinery was revalued at TZS 29,000,000 and premise also revalued at TZS 46,000,000 b) Debtors figure above is after deduction of provision on debtors amounted to TZS 3,000,000. This provision is to be increased by TZS 600,000. c) Creditors for general expenses amounted to TZS 2,500,000 were omitted from the books. d) TZS 2,000,000 was to be written off in stock in respect of obsolete items included there in. v e) Provision for TZS 800,000 was to be met for professional charges connected with revaluation account. The partnership agreed that on the retirement of Y, goodwill was valued at TZS 40,000,000. No account was to be maintained in the books but adjusting entries between partners are to be made on their capital accounts. Required: Prepare Partner's capital account. Partner's current account in columnar form. Y's Loan account. Statement of Financial Position after Y's retired. a) b) c) d)

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 12.3APE
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QUESTION 23. * X, Y; and Z were in partnership sharing profits or losses as follows; X 0.40, Y 0.35 and Z 0.25 Statement of financial position as at 31/12/2011 TZS “000" Non current assets Premises 37,500 Plant & Machinery ( note 1) 26,000 63,500 Current assets Inventory 21,000 14,000 33,500 68,500 Debtors Bank Total assets 132,000 Capital and liabilities Capital accounts 45,000 25,000 X Y 15,000 85,000 Current accounts 6,000 4,000 Y 3,000 Loan: Y 15,000 Creditors 19,000 47,000 Total capitals and liabilities 132,000 Y retired on 31/12/2011 and X and Z continues in partnership sharing or losses 0.6 and 0.4 respectively. Half of Y' S loan was repaid on 1/1/2012 and it was also agreed that TZS 40,000,000 of the balance remaining due to him should remain as a loan to the partnership It was also agreed that adjustments were to made to the statement of financial position on 31/12/2011 in respect of the following. v a) Plan & machinery was revalued at TZS 29,000,000 and premise also revalued at TZS 46,000,000 b) Debtors figure above is after deduction of provision on debtors amounted to TZS 3,000,000. This provision is to be increased by TZS 600,000. c) Creditors for general expenses amounted to TZS 2,500,000 were omitted from the books. d) TZS 2,000,000 was to be written off in stock in respect of obsolete items included there in. e) Provision for TZS 800,000 was to be met for professional charges connected with revaluation account. The partnership agreed that on the retirement of Y, goodwill was valued at TZS 40,000,000. No account was to be maintained in the books but adjusting entries between partners are to be made on their capital accounts. Required: Prepare Partner's capital account. Partner's current account in columnar form. Y's Loan account. Statement of Financial Position after Y's retired. a) b) c) d)
Transcribed Image Text:QUESTION 23. * X, Y; and Z were in partnership sharing profits or losses as follows; X 0.40, Y 0.35 and Z 0.25 Statement of financial position as at 31/12/2011 TZS “000" Non current assets Premises 37,500 Plant & Machinery ( note 1) 26,000 63,500 Current assets Inventory 21,000 14,000 33,500 68,500 Debtors Bank Total assets 132,000 Capital and liabilities Capital accounts 45,000 25,000 X Y 15,000 85,000 Current accounts 6,000 4,000 Y 3,000 Loan: Y 15,000 Creditors 19,000 47,000 Total capitals and liabilities 132,000 Y retired on 31/12/2011 and X and Z continues in partnership sharing or losses 0.6 and 0.4 respectively. Half of Y' S loan was repaid on 1/1/2012 and it was also agreed that TZS 40,000,000 of the balance remaining due to him should remain as a loan to the partnership It was also agreed that adjustments were to made to the statement of financial position on 31/12/2011 in respect of the following. v a) Plan & machinery was revalued at TZS 29,000,000 and premise also revalued at TZS 46,000,000 b) Debtors figure above is after deduction of provision on debtors amounted to TZS 3,000,000. This provision is to be increased by TZS 600,000. c) Creditors for general expenses amounted to TZS 2,500,000 were omitted from the books. d) TZS 2,000,000 was to be written off in stock in respect of obsolete items included there in. e) Provision for TZS 800,000 was to be met for professional charges connected with revaluation account. The partnership agreed that on the retirement of Y, goodwill was valued at TZS 40,000,000. No account was to be maintained in the books but adjusting entries between partners are to be made on their capital accounts. Required: Prepare Partner's capital account. Partner's current account in columnar form. Y's Loan account. Statement of Financial Position after Y's retired. a) b) c) d)
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