X,Y,Z were partners in a firm whose Balance Sheet as on 31st March 2013 was as under: BALANCE SHEET as at 31.3.2013 Liabilities $4 Assets $4 Creditors General Reserve X's Capital Y's Capital Z's Capital 18,240 7,500 20,000 14,500 10,000 Cash Debtors Stock Furniture 28,740 10,000 26,500 5,000 70,240 70,240 Y retired on that date in this connection it was decided to make the following adjustments: (a) To reduce Stock and Furniture by 5% and 10% respectively. (b) To provide for Doubtful Debts at $1,125. (c) A long dispute with the Creditors was settled and firm has to pay $8,050. In anticipation $ 5,000 have already been included in sundry creditors for this purpose. (d) Goodwill was valued at $ 12,000 and Y's share of the same be adjusted into the accounts of X and Z (e) To share profits and losses in 5:3 respectively. O Y should be paid off and the the adjusted capitals of the partners should be in their new profit sharing ratio. Adjustments to be made through cash. Prepare Revaluation Account, Partners' Capital Accounts

X,Y,Z were partners in a firm whose Balance Sheet as on 31st March 2013 was as under: BALANCE SHEET as at 31.3.2013 Liabilities $4 Assets $4 Creditors General Reserve X's Capital Y's Capital Z's Capital 18,240 7,500 20,000 14,500 10,000 Cash Debtors Stock Furniture 28,740 10,000 26,500 5,000 70,240 70,240 Y retired on that date in this connection it was decided to make the following adjustments: (a) To reduce Stock and Furniture by 5% and 10% respectively. (b) To provide for Doubtful Debts at $1,125. (c) A long dispute with the Creditors was settled and firm has to pay $8,050. In anticipation $ 5,000 have already been included in sundry creditors for this purpose. (d) Goodwill was valued at $ 12,000 and Y's share of the same be adjusted into the accounts of X and Z (e) To share profits and losses in 5:3 respectively. O Y should be paid off and the the adjusted capitals of the partners should be in their new profit sharing ratio. Adjustments to be made through cash. Prepare Revaluation Account, Partners' Capital Accounts

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The information given below was extracted from the accounting records of Veco Traders, a partnershipbusiness with Bobby and Vincent.Required:Prepare the Statement of Changes in Equity as at: 28 February 2021.INFORMATIONBalances in the ledger 28 February 2019Debit CreditCapital: Bobby 500 000Capital: Vincent 300 000Current account: Bobby (1 Mar 2020) 20 000Current account: Vincent (1 Mar 2020) 15 000Drawings: Bobby 250 000Drawings: Vincent 200 000Additional information1.The net profit according to the Profit and Loss account amounted to R500 000 on 28February 2021.2.The partnership agreement made provision for the following:1.Interest on capital must be provided at 15% per annum on the balances in the capitalAccounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 theinterest rate on capital increases to 18% per annum.2.The partners are entitled to the following monthly salaries: Bobby R11 000Vincent R10 0003.Bobby is entitled to a bonus of 15% of the net profit…
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The information given below was extracted from the accounting records of Ndlove Traders, a partnership business with Brian and Taryn as partners. REQUIRED Use the information provided to prepare the Statement of Changes in Equity for the year ended 29 February 2020. INFORMATION Extract from the ledger of Britar Traders as at 29 February 2020 Debit Credit R R Capital: Brian 900 000 Capital: Taryn 600 000 Current a/c: Brian (01 March 2019) 50 000 Current a/c: Taryn (01 March 2019) 30 000 Drawings: Brian 350 000 Drawings: Taryn 250 000 The following must be taken into account: 1. On 29 February 2020 the Statement of Comprehensive Incomec reflected, amongst others, the following: Sales R1 200 000 Sales returns R50 000 Net profit R700 000 2. The partners earn interest at 12% p.a. on their capital balances. Note: Brian increased his capital…
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Partners Arias, Bobadilla and Briones share profits and losses 50:30:20, respectively. The statement of financial position at April 30, 2019 follows: Cash P 40,000 Accounts Payable P100,000 Other Assets 360,000 Arias, Capital 74,000 Bobadilla, Capital 130,000 Briones, Capital 96,000 Total 400,000 Total P400,000 The assets and liabilities are recorded and presented at their respective fair values. Banzon is to be admitted as a new partner with a 20% capital interest and a 20% share of profits and losses in exchange for a cash contribution. No goodwill or bonus is to be…
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