Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | ||
Creditors | 38,500 | Cash | 2,000 | ||
Employees Provident Fund | 4,000 | Stock | 15,000 | ||
Workmen Compensation Reserve | 2,500 | Prepaid Insurance | 1,500 | ||
Contingency Reserve | 2,500 | Debtors | 9,400 | ||
Capital A/cs | (-) Provision for Doubtful Debts | (400) | 9,000 | ||
Amit | 26,000 | Machinery | 19,000 | ||
Dushyant | 13,000 | 39,000 | Building | 35,000 | |
Furniture | 5,000 | ||||
86,500 | 86,500 |
(i) Stock to be depreciated by 5%. |
(ii) Provision for doubtful debts to be made at Rs. 500. |
(iii) Furniture to be depreciated by 10%. |
(iv) Buildings are valued at Rs. 40,000. |
Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | |
Bank Loan | 1,07,000 | Book Debts | 75,000 | |
Sundry Creditors | 13,000 | Fixed Assets | 1,00,000 | |
Bills Payable | 20,000 | Stock | 50,000 | |
Capital A/cs | Cash | 35,000 | ||
A | 50,000 | |||
B | 45,000 | |||
C | 25,000 | 1,20,000 | ||
2,60,000 | 2,60,000 |
(i) Fixed assets were overvalued by 20%. |
(ii) Make provision for outstanding expenses Rs. 10,000. |
(iii) Goodwill was valued at Rs. 50,000. |
Answer:
New balance sheet amount = Rs. 1,06,150 Or Balance sheet amount = Rs. 2,40,000
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