Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | |
Creditors | 80,000 | Cash | 7,000 | |
Capital A/cs | Sundry Assets | 1,30,000 | ||
Nandini | 75,000 | Hina?s Capital | 23,000 | |
Krish | 5,000 | 80,000 | ||
1,60,000 | 1,60,000 |
Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | ||
Creditors | 28,000 | Cash at Bank | 10,000 | ||
Workmen's Compensation Fund | 12,000 | Debtors | 65,000 | ||
General Reserve | 20,000 | (-) Provision for Doubtful Debts | (5,000) | 60,000 | |
Capital A/cs | Stock | 30,000 | |||
A | 60,000 | Investment | 50,000 | ||
B | 40,000 | Patents | 10,000 | ||
1,60,000 | 1,60,000 |
(i) C shall bring Rs. 20,000 as his share of premium for goodwill. |
(ii) That unaccounted accrued income of Rs. 1,000 be provided for. |
(iii) The market value of investments was Rs. 45,000. |
(iv) A debtor whose dues of Rs. 5,000 were written-off as bad debts paid Rs. 4,000 settlement. |
(v) A claim of Rs. 3,000 on account of workmen's compensation to be provided for. |
(vi) Patents are overvalued by Rs. 2,000. |
(vii) C to bring in capital equal to 1/4th of the total capital of the firm after all adjustments. |
Answer:
Loss on realisation = Rs. 65,000, Amount paid to Nandini = Rs. 1,24,000; amount bought in by Krish = Rs. 16 000 and Hina = Rs. 1,01,000 Total of cash account = Rs. 1,24,000 Or Loss on revaluation = Rs. 2,000; Capitals ; A = Rs. 88,200 B = 58,800 C = 49,000 balance sheet total = Rs. 2,27,000 (i) Capital reserve = Rs. 28,667 (ii) Capital reserve = Rs. 900
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