XYZ & Co. Is a partnership firm consisting of Mr.X, Mr.Y and Mr.Z who shares profits and losses in the ratio of 2:2:1 and ABC Ltd. Is a company doing similar business. Following are the liabilities and assets of the firm and that of the company as at 31-3-2016: Liabilities XYZ & Co XYZ & Co. ABC Ltd. ABC Ltd. Equity Shares Capital: Equity Shares of 10 each Partners Capital : Plant & Machinery 5,00,000 16,00,000 Furniture & Fixture 50,000 2,25,000 2,00,000 8,50,000 2,00,000 8,25,000 4,00,000 40,000 1,00,000 20,00,000 Stock in Trade Sundry Debtors Cash at Bank 2,00,000 3,00,000 Cash in hand 1,00,000 General Reserve Sundry Creditors 10,00,000 7,00,000 3,00,000 13,00,000 10,00,000 40,00,000 | 10,00,000 40,00,000 It was decided that the firm XYZ & Co. be dissolved and all the assets (except cash and cash at bank) and all the liabilities of the firm be taken over by ABC Ltd. by issuing 50,000 shares of $ 10 each at a premium of $ 2 per share. Partners of XYZ & Co. agreed to divide the shares issued by ABC Ltd. in the profit sharing ratio and bring necessary cash for settlement of their capital. The creditors of XYZ & Co. includes $ 1,00,000 payable to ABC Ltd. An unrecorded liability of $ 25,000 of XYZ & Co. must also be taken over by ABC Ltd. Prepare : (i) Realisation Account, Partners' Capital Accounts and Cash in hand/Bank Account in the books of XYZ & Co.
XYZ & Co. Is a partnership firm consisting of Mr.X, Mr.Y and Mr.Z who shares profits and losses in the ratio of 2:2:1 and ABC Ltd. Is a company doing similar business. Following are the liabilities and assets of the firm and that of the company as at 31-3-2016: Liabilities XYZ & Co XYZ & Co. ABC Ltd. ABC Ltd. Equity Shares Capital: Equity Shares of 10 each Partners Capital : Plant & Machinery 5,00,000 16,00,000 Furniture & Fixture 50,000 2,25,000 2,00,000 8,50,000 2,00,000 8,25,000 4,00,000 40,000 1,00,000 20,00,000 Stock in Trade Sundry Debtors Cash at Bank 2,00,000 3,00,000 Cash in hand 1,00,000 General Reserve Sundry Creditors 10,00,000 7,00,000 3,00,000 13,00,000 10,00,000 40,00,000 | 10,00,000 40,00,000 It was decided that the firm XYZ & Co. be dissolved and all the assets (except cash and cash at bank) and all the liabilities of the firm be taken over by ABC Ltd. by issuing 50,000 shares of $ 10 each at a premium of $ 2 per share. Partners of XYZ & Co. agreed to divide the shares issued by ABC Ltd. in the profit sharing ratio and bring necessary cash for settlement of their capital. The creditors of XYZ & Co. includes $ 1,00,000 payable to ABC Ltd. An unrecorded liability of $ 25,000 of XYZ & Co. must also be taken over by ABC Ltd. Prepare : (i) Realisation Account, Partners' Capital Accounts and Cash in hand/Bank Account in the books of XYZ & Co.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter23: Accounting For Partnerships
Section: Chapter Questions
Problem 1ANFS
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Transcribed Image Text:XYZ & Co. Is a partnership firm consisting of Mr.X, Mr.Y and Mr.Z who shares profits and losses in the
ratio of 2:2:1 and ABC Ltd. Is a company doing similar business.
Following are the liabilities and assets of the firm and that of the company as at 31-3-2016:
Liabilities
XYZ & Co
ABC Ltd.
XYZ & Co. ABC Ltd.
Plant & Machinery 5,00,000o 16,00,000
Furniture & Fixture 50,000 2,25,000
2,00,000 8,50,000
2,00,000 8,25,000
Equity Shares Capital:
Equity Shares of
20,00,000 Stock in Trade
Sundry Debtors
Cash at Bank
10 each
Partners Capital :
2,00,000
4,00,000
Y
Cash in hand
40,000 1,00,000
3,00,000
1,00,000
General Reserve
10,00,000
7,00,000
Sundry Creditors
3,00,000
13,00,000
10,00,000 40,00,000
|
10,00,000 40,00,000
It was decided that the firm XYZ & Co. be dissolved and all the assets (except cash and cash at bank)
and all the liabilities of the firm be taken over by ABC Ltd. by issuing 50,000 shares of $ 10 each at a
premium of $ 2 per share.
Partners of XYZz & Co. agreed to divide the shares issued by ABC Ltd. in the profit sharing ratio and
bring necessary cash for settlement of their capital.
The creditors of XYZ & Co. includes $ 1,00,000 payable to ABC Ltd. An unrecorded liability of $ 25,000
of XYZ & Co. must also be taken over by ABC Ltd.
Prepare :
(6)
Realisation Account, Partners' Capital Accounts and Cash in hand/Bank Account in the
books of XYZ & Co.
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