The following is the Balance Sheet of Mohammed and Hamed who share profits in the ratio of 5:4. Balance Sheet as at 31-12-2021 Liabilities Amount Assets (RO.) Amount (RO.) Sundry Creditors 30,000 Cash in Hand Capital Account Debtors Stock 90,000 Furniture 30,000 20,000 A 50,000 30,000 B 40,000 10,000 Plant and Machinery 30,000 Total 120,000 Total 120,000 On that date Marwan is admitted into the partnership on the following terms That Marwan is to bring in OMR 30,000 as capital and OMR 10,000 as premium for goodwill for 1/5th share. • That the value of stock is reduced by 10% while plant & machinery is appreciated by 10%. • That furniture is devalued at OMR 8,500 • That a provision for doubtful debt is to be created on sundry debtors at 7.5% and OMR 150 is to be provided for an electricity bill. • Investment worth OMR 5,000 (not mentioned in the balance sheet) is to be taken into account. • A creditor of OMR 300 is not likely to claim his money and is to be written off. Required: Record journal entries and prepare revaluation account and capital account of partners

The following is the Balance Sheet of Mohammed and Hamed who share profits in the ratio of 5:4. Balance Sheet as at 31-12-2021 Liabilities Amount Assets (RO.) Amount (RO.) Sundry Creditors 30,000 Cash in Hand Capital Account Debtors Stock 90,000 Furniture 30,000 20,000 A 50,000 30,000 B 40,000 10,000 Plant and Machinery 30,000 Total 120,000 Total 120,000 On that date Marwan is admitted into the partnership on the following terms That Marwan is to bring in OMR 30,000 as capital and OMR 10,000 as premium for goodwill for 1/5th share. • That the value of stock is reduced by 10% while plant & machinery is appreciated by 10%. • That furniture is devalued at OMR 8,500 • That a provision for doubtful debt is to be created on sundry debtors at 7.5% and OMR 150 is to be provided for an electricity bill. • Investment worth OMR 5,000 (not mentioned in the balance sheet) is to be taken into account. • A creditor of OMR 300 is not likely to claim his money and is to be written off. Required: Record journal entries and prepare revaluation account and capital account of partners

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Description: The following is the Balance Sheet of Mohammed and Hamed who share profits in the ratioof 5:4.Balance Sheet as at 31-12-2021LiabilitiesAmountAssets(RO.)Amount(RO.)Sundry Creditors30,000 Cash in HandCapital AccountDebtorsStock90,000 Furniture30,00020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 315000 Cash 26250 Bills Payable 105000 Debtors 367500 General Reserve 210000 Stock 157500 Сapital: Plant 131250 Ahmed 420000 Buildings 525000 Wahid 210000 Profit & Loss Ac 52500 Bank Overdraft 315000 | Equipment 315000 Total 1575000 Total 1575000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 630000 b) Stock is revalued at 112875 c) Goodwill is raised at 210000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 262500 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.
Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as onMarch 31, 2021. Liabilities & Equity Bills Payable Sundry Creditors Outstanding Expenses Capital: RO Assets RO 80000 Cash in Hand 156250 Cash at Bank 1250 Debtors O Stock 1875 511250 222500 278750 Lalitha 500000 Furniture 43750 Jothi 312500 Plant and Machinery 121875 Kanaga 375000 Building 300000 Profits & Loss A/c 55000 1480000 1480000 Lalitha retired from the partnership on April 01, 2021 under the following terms: The assets are to be valued as under: Stock 250000 Furniture 37500 Plant & Machinery Building 112500 250000 A provision for doubtful debt to be created at 10625 Goodwill of the firm was to be valued at 75000 The gaining ratio is 2:3. Lalitha was to be paid off immediately. Record the necessary journal entries, prepare Revaluation Account, Capital Accounts and Balance Sheet of the reconstituted partnership.
Two partners Tom and Jerry have the following details of their accounts for the year ended 31 December 2021. Capital accounts: Current accounts: Salaries: Drawings: Profit sharing ratio: Net profit before appropriation £100,000 £ Tom 8,000 3,000cr 10,000 25,000 3 £ Jerry 6,000 1,000 dr 30,000 30,000 1 Required: Prepare the relevant income statement and statement of financial position extracts.
Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 90000 Cash 7500 Bills Payable 30000 Debtors 105000 60000 Stock 0 Plant General Reserve 45000 Capital: 37500 Ahmed 120000 Buildings 150000 Wahid 60000 Profit & Loss Ac 15000 Bank Overdraft 90000 Equipment 90000 Total 450000 Total 450000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 180000 b) Stock is revalued at 32250 c) Goodwill is raised at 60000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 75000 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.
Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 210000 Cash 17500 Bills Payable 70000 Debtors 245000 General Reserve 140000 Stock 105000 0 Plant 280000 Buildings Capital: 87500 Ahmed 350000 Wahid 140000 Profit & Loss Ac 35000 Bank Overdraft 210000 Equipment 210000 Total 1050000 Total 1050000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 420000 b) Stock is revalued at 75250 c) Goodwill is raised at 140000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 175000 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.
On August 1, 2020, the business accounts of Peter and Senen appear below:Assets Peter SenenCash P11,000 P22,354Accounts receivable 84,536 217,890Inventories 100,035 240,102Land 603,000 428,267Buildings 200,345 384,789Other Assets 22,000 23,600Total P1,020,916 P1,317,002Liabilities and CapitalAccounts payable P178,940 P243,650Notes payable 200,000 345,000Peter, Capital 641,976Senen, Capital 728,352Total P1,020,916 P1,317,002Peter and Senen agreed to form a partnership contributing their respective assets and liabilitiessubject to the following adjustments:Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respectivebooks.Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective booksOther Assets of P2,200 and P3,600 in Peter and Senen’s books are written off.After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interestin the firm. They also agreed to divide profits and losses in the ratio of 4:4:2…
Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his partner is shown below: Mateo Roa Balance Sheet October 1, 2021 Assets Cash P 60,000 30,000 Notes Receivable Accounts Receivable Less: Allowance for Uncollectible 230,000 Accts. Merchandise Inventory 80,000 Furniture and Fixtures Less: Accumulated Depreciation 54,000 P 454.000 Total Assets Liabilities and Owner's Equity Notes Payable P 40,000 100,000 Accounts Payable Mateo Roa, Capital 314,000 Total Liabilities and Owner's Equity P454,000 Martin Penaco offered to invest cash to give him a capital credit equal to one-half of Mateo Roa's capital after giving effect to the adjustments below. Roa accepted the offer. 1. The merchandise is to be valued at P74,000. 2. The accounts receivable is estimated to be 95% collectible. 3. Interest accrued on the notes receivable will be recognized: P10,000, 12% dated July 1, 2021 and P20,000, 12% dated August 1, 2021. 4. Interest on notes payable to be…
Mr. Suner, Mr. Behman and Mr. Meuthosam are partners, who share profit in the ratio of 2:2:1. Following is the balance sheet as on March 31, 2020. Balance Sheet of Mr. Suneer, Mr. Rehman and Mr. Mouthosam as on March 31, 2020 Liabilities Amount (OMR) Assets Amount (OMR) Mr. Suneer's capital 5,000 Cash and Bank 2,500 Mr. Rehman's Capital 2,000 Stock 2,500 Mr. Mouthosam's capital 1,000 Furniture 1,000 Reserve fund 2,500 2,000 Debtors Creditors 2,000 Plant and 4,500 machinery 12,500 12,500 They decided to dissolve the business. The following amounts were realized. There was an unrecorded asset of Rs.350, which was taken over by Mr. Rehman at Rs.150. How much amount of unrecorded assets are recorded in the realization account? OMA 200 None of the listed choices OMR I50 OMA150 Creditors paid 2% less. How much amount of creditors are recorded in the credit side of realization account?
The accounts of Kelly, Loise, and Kyla, who share profits in a 5:3:2 ratio, are as follows on December 31, 2010: P 10,000 P 12,000 Kelly, drawing (Dr.) Kyla, drawing (Cr.) Receivable fr. Kelly (Dr.) Loise, loan Kelly, capital Loise, capital Kyla, capital 4,000 6,000 49,500 37,000 32,500 Total assets amount to P176,000, including P53,500 cash. The partnership is liquidated and Kyla ultimately receives P27,500 as his share of cash in final distribution. How much did Kelly and Loise receive?
The accounts of Kelly, Loise, and Kyla, who share profits in a 5:3:2 ratio, are as follows on December 31, 2010: P 10,000 4,000 Kelly, drawing (Dr.) Kyla, drawing (Cr.) Receivable fr. Kelly (Dr.) Loise, loan Kelly, capital 6,000 Loise, capital Kyla, capital P 12,000 49,500 37,000 32,500 Total assets amount to P176,000, including P53,500 cash. The partnership is liquidated and Kyla ultimately receives P27,500 as his share of cash in final distribution. How much did Kelly and Loise receive? P10,500; P34,500 P11,000; P35,500 P11,000; P35,000 P12,000; P35,500
Orion, Leanna and Aric were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31st March, 2008. Balance Sheet as on 31 March, 2008 Assets Liabilities Capital Accounts: Orion Leanna Aric General Reserve Creditors Orion's Loan A/c Bills payable Amount $ Machinery 30,000 Stock 10,000 Debtors 10,000 Loss: R.D.D. 3,000 Investment 20,000 Profit and Loss A/c 4,000 Bank 7,000 84,000 27,500 1,500 2) Dissolution expenses were $ 1,500. 3) Goodwill of the firm realised $ 12,000 Pass the necessary Journal entries in the books of the firm. Amount $ 25,000 10,000 26,000 12,000 9,000 2,000 84,000 On the above date the partners decided to dissolve the firm: 1) Assets were realised: Machinery $ 22,500, Stock $9,000, Investment $ 10,500, Debtors $ 22,500.
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