CBSE Class 12-commerce Answered
Roy, Raj and Raman were partners in a firm sharing profits equally. Their Balance Sheet
31.12.2011 stood as:
Liabilities Bills Payable Creditors Employees Provident Fund Workers Compensation Fund General Reserve Roy Raj Raman
25,000 30,000
27,000
BALANCE SHEET as at 31.12.2011 Rs. Assets 20,000 Cash 18,000 Debtors
60.000 Less : Provision for Debt 15,000 Bills Receivable 30,000 Land and Building Plant and Machinery Goodwill
82,000 2,25,000
Rs.
42.000
40,000 25,000 60,000 40,000 18,000
2,25,000
43.000 3,000
It was mutually agreed that Raman will retire from partnership & for this purpose following terms were agreed upon.
(i)
Goodwill to be valued on 3 years' purchase of average profit of last 4 years which were 2008 : Rs. 50,000 (loss); 2009 : Rs. 21,000; 2010: Rs. 52.000; 2011:
Rs. 22,000.
The Provision for Doubtful Debt was raised to Rs. 4,000.
To appreciate Land by 15%.
To decrease Plant and Machinery by 10%.
Create provision of Rs. 600 on Creditors, A sum of Rs. 5,000 on Bills Payable was not likely to be claimed.
(ii) (iii) (iv) (v) (vi) (vii) which would in cash.
(viii)
The continuing partners decided to show the total capital of new firm at 1,00,000 to in their new profit sharing ratio which is equal. Adjustments to be made
To pay a sum of Rs. 17,000 to Raman and transfer the balance to his loan Account Make necessary accounts and prepare the Balance Sheet of the new partner.
Asked by Cristiano | 19 Jun, 2020, 09:18: PM
Expert Answer
The question asked is from the chapter Retirement/Death of Partner. Complete solutions along with the detailed workings for all similar questions are provided on our website under Text Book Solutions.
Answered by Surabhi Gawade | 20 Jun, 2020, 12:34: PM
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