Accounting for Partnership Firms (CBSE Class-12 Accountancy): Questions 14 - 15 of 135

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 209 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 250.00 or

Question number: 14

» Accounting for Partnership Firms » Fixed Versus Fluctuating Capital Accounts

One Liner Question▾

Write in Brief

How will you show the following in case the capitals are Fixed

a) Additional capital introduced

b) Drawings

c) Withdrawal of capital

d) Interest on capital and

e) Interest on loan by a partners?

Question number: 15

» Accounting for Partnership Firms » Partnership

Essay Question▾

Describe in Detail

Anil, Jatin and Ramesh were sharing profit in the ratio of 2: 1: 1. Their Balance Sheet as at 31.12. 2001 stood as follows: -

Balance sheet as on 31st December, 2001.

table shows assets and liabilities of the firm at the end of the year

Liabilities

Rs.

Assets

Rs.

Creditors

24, 400

Cash

1, 00, 000

Bank Loan

10, 000

Debtors

Less: Provision

20000

1600

18, 400

Profit and Loss A/c

18, 000

Stock

10, 000

Bills Payable

2, 000

Land & Building

20, 000

Anil’s Capital

50, 000

Investment

14, 000

Jatin’s Capital

40, 000

Goodwill

22, 000

Ramesh’s Capital

40, 000

1, 84, 400

1, 84, 400

Ramesh died on 31st March 2002. The following adjustments were agreed upon-

  • Building be appreciated by Rs. 2, 000
  • Investments be valued at 10 % less than the book value.
  • All debtors (except 20 % which are considered as doubtful) were good.
  • Stock be increased by 10 %
  • Goodwill be valued at 2 years’ purchase of the average profit of the past five years.
  • Ramesh’s share of profit to the death be calculated on the basis of the profit of the preceding year. profit for the years 1997, 1998, 1999 and 2000 were Rs. 26, 000, Rs. 22, 000, Rs. 20, 000 and Rs. 24, 000 respectively.

Prepare revaluation account, partner’s capital Account.

Explanation

REVALUATION ACCOUNT of the firm

table shows re-valuated amounts of assets and liabilities of the firm

(Dr. ) Particulars

Rs.

(Cr. ) Particulars

Rs.

To Investment A/c

1, 400

By Building A/c

2, 000

To Provision for doubtful debt A/c

2, 400

By Stock A/c

1, 000

By Loss transferred… (146 more words) …

Sign In