Mohammed, Ahmed and Hamed were partners of a firm sharing profit and lossesin the ratio of 4: 2: 4. Set out below was their balance sheet as on 31-12-2021.Balance SheetLiabilities & EquityROAssetsROBills Payable20,000 Cash in HandSundry Creditors30,000 Cash at BankOutstanding Expenses1,000 DebtorsCapital:StockMohammed 40,000FurnitureAhmed20,000Plant and MachineryHamed40,000100,000 BuildingProfits & Loss A/c10,000Total161,000 TotalAhmed retired from the partnership on 1-1-21 under the following terms:Goodwill of the firm was to be valued at OMR 10,000●The assets are to be valued as under:Stock 8,000; Furniture 25,000; Plant Machinery 8,000; Building 50,000A provision for doubtful debts to be created at OMR 500The gaining ratio is 8:8.• Ahmed was to be paid off immediately.Record the necessary journal entries, prepare RevaluationAccount, Capital Accounts, Bank account and Balance Sheet of the reconstitutedpartnership.1,00060,00010,00010,00030,00010,00040,000161,000

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Description: Mohammed, Ahmed and Hamed were partners of a firm sharing profit and lossesin the ratio of 4: 2: 4. Set out below was their balance sheet as on 31-12-2021.Balance SheetLiabilities & EquityROAssetsROBills Payable20,000 Cash in HandSundry Creditors30,

Reconstitution of Partnership Firm: Partnership has a partnership agreement and whenever a change is…

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Accounting

the ratio of 4: 2: 4. Set out below was their balance sheet as on 31-12-2021. Balance Sheet Liabilities & Equity RO Assets RO Bills Payable 20,000 Cash in Hand Sundry Creditors 30,000 Cash at Bank Outstanding Expenses 1,000 Debtors Capital: Stock 1,00 60,00 10,00 10.00

the ratio of 4: 2: 4. Set out below was their balance sheet as on 31-12-2021. Balance Sheet Liabilities & Equity RO Assets RO Bills Payable 20,000 Cash in Hand Sundry Creditors 30,000 Cash at Bank Outstanding Expenses 1,000 Debtors Capital: Stock 1,00 60,00 10,00 10.00

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 1EB: Provide journal entries to record each of the following transactions. For each, identify whether the...

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The following is the balance sheet of P, Q and R who were sharing profits and losses in the proportion of 4:3:2 as on 31st March 2009 Liabilities RO Assets RO Capitals P Q R P’s Loan Provision for taxation Accounts Payables 80,000 45,000 35,000 7,000 3,000 56,000 226,000 Premises Fixtures and fittings Joint life policy Stock Accounts receivables Cash 85,000 20,000 10,000 68,000 40,000 3,000 226,000 Q decides to retire from the business due to her marriage. It is agreed that Commission accrued but not received RO 6,000 be brought into accounts Provision for taxation need not be maintained as there is no liability attached to it The surrender value of the joint life policy is RO 8,000 Premises is appreciated by RO 12,000 Fixtures and fitting and stock to be depreciated by 10% Goodwill of the entire firm be fixed at RO 21,600 and Q’s share if it be adjusted through the capital accounts of P and R…
The following is the statement of financial position of PQR sharing profits and losses in the ratio of 3:2:1 as on 31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - 1. The value of computer reduced by 10% 2. A part of value of Patents for RO 1000 became useless and it has to be reduced. 3. Buildings to be revalued at RO 55,000 4. Furniture was depreciated by 10% 5. S shall bring RO 25,000 as capital for ¼ share of future profits a) Calculate New Profit Sharing Ratio and Sacrificing Ratio b) Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission.
The following is the statement of financial position of PQR sharing profits and losses in the ratio of 3:2:1 as on 31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - 1. The value of computer reduced by 10% 2. A part of value of Patents for RO 1000 became useless and it has to be reduced. 3. Buildings to be revalued at RO 55,000 4. Furniture was depreciated by 10% 5. S shall bring RO 25,000 as capital for ¼ share of future profits a) Calculate New Profit Sharing Ratio and Sacrificing Ratio b) Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission. Answer: Revaluation Account…
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