shaalaa.com
S

Solution - P, Q and R Were Partners in a Firm Sharing Profits in the Ratio of 3:2:1. on 31-3-2015 Their Balance Sheet Was as Follows - Preparation of Revaluation Account and Balance Sheet

Account
User


Login
Register


      Forgot password?
Share
Notifications

View all notifications
Books Shortlist
Your shortlist is empty

Question

P, Q and R were partners in a firm sharing profits in the ratio of 3:2:1. On 31-3-2015 their Balance Sheet was as follows :

                                     Balance Sheet of P,Q and R as on 31-3-2015

Liabilities Amount(Rs.) Assets Amount(Rs.)

Creditors

General Reserve

Capitals

     P                                      1,80,000

     Q                                      1,20,000

     R                                        60,000

 

2,52,000

63,000

 

 

 

3,60,000

 

Bank

Debtors

Stock

Investments

Furniture

Machinery

 

51,000

69,000

3,30,000

90,000

30,000

1,05,000

 

  6,75,000   6,75,000

On the above date S was admitted as a new partner and it was decided that:

(i) The new profit sharing ratio between P, Q, R and S will be 2:2:1:1.

(ii) Goodwill of the firm was valued at Rs.2, 70,000 and S will bring his share of goodwill premium in cash.

(iii) The market value of investments was Rs.64,000.

(iv) Machinery will be reduced to Rs.87,000.

(v) A creditor of Rs.9,000 was not likely to claim the amount and hence to be written-off.

(vi) S will bring proportionate capital so as to give him 1/6th share in the profits of the firm.

Prepare Revaluation Account. Partners' Capital Accounts and the Balance Sheet of P, Q, R and S.

Solution

You need to to view the solution
Is there an error in this question or solution?

Similar questions VIEW ALL

Solution for question: P, Q and R Were Partners in a Firm Sharing Profits in the Ratio of 3:2:1. on 31-3-2015 Their Balance Sheet Was as Follows concept: Preparation of Revaluation Account and Balance Sheet. For the courses CBSE (Arts), CBSE (Commerce), CBSE (Science)
S