Accounting for Partnership Firms-Past Adjustments (CBSE Class-12 Accountancy): Questions 9 - 11 of 16

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Question number: 9

» Accounting for Partnership Firms » Past Adjustments

One Liner Question▾

Write in Brief

How would you calculate interest on drawing of equal amount drawn in the middle of every month?

Question number: 10

» Accounting for Partnership Firms » Past Adjustments

Essay Question▾

Describe in Detail

The Balance Sheet of A, B and C as on 31st December 2007

shows balance of assets and liabilities of the firm

Liabilities

Amount

Assets

Amount

A’s Capital

400, 00

Buildings

20, 000

B’s Capital

30, 000

Motor Car

18, 000

C’s Capital

20, 000

Stock

20, 000

General Reserve

17, 000

Investments

1, 20, 000

Sundry Creditors

1, 23, 000

Debtors

40, 000

Patents

12, 000

2, 30, 000

2, 30, 000

The partners share profits in the ratio of 8: 4: 5. C retires from the firm on the same date subject to the following term S and conditions:

i) 20 % of the General Reserve is to remain’ as a reserve for bad and doubtful debts. ;

ii) Motor) r Car is to be decreased by 5%.

iii) Stock is to be revalued at Rs. 17, 500.

iv) Goodwill is valued at’ 2 years purchase of the average profits of last 3 years.

Profits were; 2001: Rs. 11, 000; 200l: Rs. 16, 000 and 2003: Rs. 24, 000.

C. was paid in July A and B borrowed the necessary amount from the Bank on the security of Motor Car and stock to payoff C.

Prepare Revaluation Account, Capital Accounts and Balance Sheet of A and B.

Explanation

REVALUATION ACCOUNT of the firm

shows re-valuated amount of the assets and liability

Particulars

Rs.

Particulars

Rs.

To Motor Cars A/C

900

By Loss transferred to

To Stock A/C

2, 500

A’s Capital A/c

1, 600

B’s Capital A/c

800

C’s Capital A/c

1, 000

3, 400

3, 400

3,… (170 more words) …

Question number: 11

» Accounting for Partnership Firms » Past Adjustments

Short Answer Question▾

Write in Short

X and Y are partners. X’s capital is Rs. 10; 000 and Y’s capital is Rs. 6.000. Interest is payable@6%, p. a: . Y is entitled to a salary of Rs. 300 per month. Profit for the current year before charging any Interest and Salary to Y is Rs. 8, 000 Divide the profit between X & Y. ’

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