Topics
Amalgamation, Absorption and External Reconstruction (Excluding Intercompany Holdings)
Accounting of Transactions of Foreign Currency
- Accounting of Transactions of Foreign Currency
- Purchase of Goods in Foreign Currency
- Account for Foreign Currency Transactions
- Purchase of Fixed Assets in Foreign Currency
- Foreign Currency Loan
- Foreign Exchange Accounting
- Accounting of Transactions of Foreign Currency Problems
- Statement of Affairs and Deficiency Account Problems
Liquidation of Companies
Underwriting of Shares and Debentures
Accounting for Limited Liability Partnership
Related QuestionsVIEW ALL [6]
Tom decided to convert his business into a LLP on 31.3.2017 when balance sheet was as follows :
Balance Sheet as on 31.3.2017
| Liabilities | Rs. | Assets | Rs. |
| Capital | 4,50,000 | Machinery | 2,00,000 |
| Creditors | 2,00,000 | Building | 2,00,000 |
| Reserve | 30,000 | Stock | 1,80,000 |
| Bank loan | 2,28,000 | Debtors | 3,00,000 |
| Patents | 20,000 | ||
| Cash | 8,000 | ||
| 9,08,000 | 9,08,000 |
Tom and Jerry will be forming a new LLP and decided to share profits equally.
Capital contribution in cash and each has to contribute '16,00',000.
Other terms & conditions :
(i) Machinery and building revalued at Rs. 2,40,000 and Rs. 2,70,000 respectively.
(ii) Creditors are to be paid-off by vendor immediately.
(iv)Other assets and liabilities are to be taken at book values.
(iv)The vendors were to-be settled by payment of Rs.14,00,000.
Prepare Realisation Ale in the books of Vendor. Prepare Journal Entries and Balance Sheet in the books of Tom and Jerry LLP.
Pravin decided to convert his Business into LLP on 31.3.2015.
The Balance Sheet of Pi·aviri as on 31.3.2015 .
Balance Sheet of Pravin as on 31.3.2015
| Liabilities | Rs. | Assets | Rs. |
| Sundry Creditors | 35,000 | Machinery | |
| Bills Payable | 5,000 | Furniture | |
| Praveen's Capital | 90,000 | Stock | |
| Debtors | |||
| Cash | |||
| 1,30,000 | 1,30,000 |
Praveen and Pniful will be partners in LLP sharing profit in the ratio of 3 : 2 respectively. Capital is to be contributed in Cash as Praveen Rs. 1,40,000 and Praful Rs.1,00,000.
Other terms and conditions :
(i) Goodwill. valued at Rs . 30,000.
(ii) Machinery is to be valued at Rs . 60,000.
(iii) Creditors are to be paid at discount of 2%
(iv) Realisation expenses incurred and paid Rs, 500 and borne by vendor.
(v) Other assts and liabilities are to be taken at book value.
(1) Prepare necessary ledgers in the books of Praveen.
(2) Provide necessary journal entries in the books of LLP.
(3) Prepare Balance Sheet of LLP.
The following is a set of information provided by Anil & Aniket LLP for the year ended 31.3.2017.
| Particulars | Rs. |
| Sales | 20,12,000 |
| Purchases | 11,08,00d |
| Stpck as on 1/04/2016 | 1,45,000 |
| Carriage Inward | 24,000 |
| Wages | 1,80,000 |
| Unproductive Wages | 30,000 |
| Salaries | 73,000 |
| Rent | 33,000 |
| Sundry Receipts | 25,800 |
| Return Inwards | 12,000 |
| Return Outwards | 4,000 |
| Machinery | 4,00,000 |
| Furniture | 1,00,000 |
| Trade Marks | 50,000 |
| Interest on Ballk Loan | 11,500 |
| Advertising Expenses | 17,500 |
| Carriage Outward | 7,500 |
| Debtors | 2,00,000 |
Other Data:
(i) Stock as on 31.3.2017: 1,90,000.
(ii) Depreciate: [email protected] 10%, [email protected] 20% and Trade [email protected] 10%.
(iii) Further Bad debts 10;000 and provide R.D.D. at 4%.
(iv) Outstanding Expenses : Salary 2,000, Rent 3,000, Wages 10,000.
Prepare Statement of Income & Expenditure for the year ended 31.3.2017.
Prepare Statement of Assets & Liabilities (Part - B : Statement of Account) from the following data as on 31.3.2016 for Simran and Saroi LLP ·
| Particulars | Rs. |
| Capital Account : Simran | 4,00,000 |
| saroj | 3,00,000 |
| Income & Expenditure A/c (Surplus) | 60,000 |
| Bank Balance | 45,000 |
| Cash in hand | 15,000 |
| Trade Debtors | 1,80,000 |
| Bills Receivable | 80,000 |
| Bills Payables | 75,000 |
| Trade Creditors | 1,25,000 |
| Furniture | 50,000 |
| Goodwill | 72,000 |
| Machinery | 3,00,000 |
| Stock (31.3.2016) | 1,08,000 |
| Investments | 80,000 |
| Bank loan (Secured Against Stock) | 2,00,000 |
| Provision for Taxation | 70,000 |
| Premises | 3,00,000 |
Abbay carrying on business On 31/3/16, Balance Sheet was as under:
Balance Sheet as on .1st March 2016
| Liabilities | Rs. | Assets | Rs. |
| Capital | 1,80,000 | Vehicle | 15,000 |
| Creditors | 45,000 | Investment | 3,000 |
| Bills Payable | 15,000 | Plant & Machinery | 90,000 |
| Abhay's Loan | 60,000 | Building | 60,000 |
| Stock | 50,000 | ||
| Cash | 32,000 | ||
| Debtor | 50,000 | ||
| 3,00,000 | 3,00,000 |
On the above date, a LLP was incorporated to take over the above business on the following terms and conditions :On the above date, a LLP was incorporated to take over the above business on the
following terms and conditions :
(i) All assets (except cash and vehicle) and all liabilities (except Abhay's loan) to be taken over by the company for which all assets are valued at par except building and stock which are .considered worth 75.,000 and 60;000 respectively.
(ii) Goodwill is valued at 1,00,000 .
(iii) Abbay and Vasant will be the partners of LLP sharing profits equally. They contributed 1,60,000 each.
(iv) Abhay's loan is to be partly settled by his taking over the cash and vehicle at par.
(v) The purchase consideration is received in cash.
Show Ledger Accounts to close the books of the firm, Journal Entries in the books of Purchaser and Statement of Assets and Liabilities.
Bunty decided to convert his Business into a LLP under the name of Bunty and Babli LLP. The Balance· Sheet ·as at 31/3/2017 was as follows :
Balance Sheet as on 31st March, 2017
| Liabilities | Rs. | Assets | Rs. |
| Capital | 72,500 | Plant | 45,000 |
| General Reserve | 15,000 | Vehicle | 20,000 |
| Bank Overdraft | 20,000 | Copy Rights | 5,000 |
| Creditors | 42,500 | Stock | 42,500 |
| Bills Receivable | 30,000 | ||
| Debtors | 7,500 | ||
| 1,50,000 | 1,50,000 |
Bunty & Babli have decided to share profits equally. The capital contribution is Rs. 62,500 each.
other terms and con.ditions as follows :
(i) Goodwill valued at Rs. 23,000.
(ii) Plant is to be taken over at Rs. 50,000.
(iii) LLP, to pay Bank Overdraft and Creditors immediately for which the LLP should sell stock at Rs. 43,000.
(iv) The LLP took a loan off 25,000 by mortgaging plant.
You are required to give :
(a) Necessary ledgers in the books of vendor.
(b) Journal Entries.and Balance Sheet in the books of Bunty and Babli LLP.
