Accounting for Partnership Firms (CBSE Class-12 Accountancy): Questions 2 - 4 of 135

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Question number: 2

» Accounting for Partnership Firms » Partnership

One Liner Question▾

Write in Brief

List the items that may appear on the debit side and credit side of a partner’s fluctuating capital account.

Question number: 3

» Accounting for Partnership Firms » Reconstitution and Dissolution » Retirement and Death of a Partner

Essay Question▾

Describe in Detail

R, S and T were partners in a firm sharing profits in 2: 2: 1 ratio. On 1.4. 2004 their Balance Sheet was as follows:

Balance Sheet as On 1.4. 2004

shows assets and liabilities of the firm

Liabilities

Amount

Assets

Amount

Bank Loan

12, 800

Cash

51, 300

Sundry Creditors

25, 000

Bills Receivable

10, 800

Capitals:

Debtors

35, 600

R

80, 000

Stock

44, 600

S

50, 000

Furniture

7, 000

T

40, 000

1, 70, 000

Plant and Machinery

19, 500

Profit & and Loss A/c

9, 000

Building

48, 000

2, 16, 800

2, 16, 800

S retired from the firm on 1.4. 2004 and his share was ascertained on the revaluation of assets as follows:

Stock Rs. 40, 000; Furniture Rs. 6, 000; Plant and Machinery Rs. 18, 000; Building 40, 000, Rs. 1, 700 were to be provided for doubtful debts. The goodwill of the firm was valued at Rs. 12, 000.

S was to be paid Rs. 18, 080 in cash on retirement and the balance in three equal yearly instalments. Prepare Revaluation Account, Partner’s Capital Accounts, S’s Loan Account and Balance Sheet on 1.4. 2004.

Explanation

REVALUATION ACCOUNT of partners

shows re-valuated amount of assets and liabilities

particular

amount

particular

amount

To Stock

4, 600

By Loss transferred to Partners’ capital A/cs:

To Furniture

1, 000

R

6, 720

To Plant &. Machinery

1, 500

S

6, 720

To Building

8, 000

T

3, 360

16,… (240 more words) …

Question number: 4

» Accounting for Partnership Firms » Past Adjustments

One Liner Question▾

Write in Brief

In a partnership firm assets are Rs. 5, 00, 000 and liabilities are Rs. 2, 00, 000. The normal profit rate is 15%. State the amount of normal profits.

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