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    ACC Partnership

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    danny

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    © All Rights Reserved
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    ACC Partnership

    Uploaded by

    danny
    3 views2 pages

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    ACC partnership

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    3 views2 pages

    ACC Partnership

    Uploaded by

    danny

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    1.

    The following is the Balance sheet of Karthik, Alagappan and Murtaza sharing profits and losses in the ratio
    of 6:5:3 respectively.
    Liabilities Rs. Assets Rs.
    Capital accounts: Cash 1,890
    Karthik 35,400
    Alagappan 29,850
    Murtaza 14,550
    Reserve 10,500 Debtors 26,460
    Bills payable 6,300 Stock 29,400
    Creditors 18,900 Furniture 7,350
    Buildings 45,150
    Goodwill 5,250
    1,15,500 1,15,500

    Murtaza decided to retire from the partnership on 31-03-2015 on the following agreement:
    a. Furniture be depreciated by Rs.920.
    b. Stock be depreciated by 10%.
    c. A provision of Rs.1,320 be made for outstanding repair bill.
    d. Value of building having appreciated be brought upto Rs.59,850.
    e. Value of goodwill be brought upto Rs.14,070.
    f. Murtaza to be paid in 2 equal installments.
    Prepare revaluation account, partner’s capital account and balance sheet of the new firm. (20)
    2. M, S and T are partners sharing profits in the ratio of 5:3:2. Their balance sheet as on 31st
    March 1997 stands as follows.
    Liabilities Rs. Rs. Assets Rs. Rs.
    Sundry creditors 40,000 Cash at bank 6,000
    General reserve 20,000 Debtors 72,000
    (-) provision for D/D 2,000 70,000
    Profit & loss A/c 60,000 Stock 40,000
    Capital accounts M 1,00,000 Furniture 14,000
    S 90000 Machinery 1,00,000
    T 80000 2,70,000 Buildings 1,60,000
    3,90,000 3,90,000

    ‘S’ retires with effect from 1st April, 1997 on the following terms:
    a. A claim of Rs.2, 000 included in sundry creditors is not to arise.
    b. The provision for doubtful debts is to be increased to Rs.3, 600. One of the debtor written
    as bad debts paid the money Rs. 400
    c. Machinery is to be depreciated by 5% and furniture by 10%.
    d. Buildings are to be appreciated by 10%.
    e. Goodwill of the firm is valued as Rs. 35000
    Prepare a revaluation account (5)

    3. Arun and karthik are partners sharing profit and loss in the ratio of 3:2. Their balance sheet as on
    31st March 2000 is as under:
    Liabilities Rs. Assets Rs.

    Sundry creditors 48,000 Cash 6,000

    Bills payable 50,000 Stock 33,000

    Profit & loss A/c 30,000 Sundry debtors 15,000


    (-) prov. For d/d 1,000 14,000

    Capital accounts: Arun 90,000 Goodwill 30,000

    Karthik 75,000 Plant & machinery 90,000

    Land & buildings 1,20,000

    2,93,000 2,93,000

    They decided to admit Vinoth into the partnership with effect from 1st April 2000 on the following terms:
    a. Vinoth to bring in Rs.60,000 as capital for 1/3rd share of profits.
    b. Goodwill was valued at Rs.45,000.
    c. Creditors include Rs.5,000 no longer payable and this sum was to be written off.
    d. Stock was to be written down by Rs.8,000.
    e. Investments of Rs.10,000 be brought into books.
    f. Land was valued at Rs.1,50,000.
    g. The provision for doubtful debts was to be increased to Rs.3,000.
    Show journal entries, prepare revaluation account, capital accounts and the balance sheet of the new firm.
    (20)

    4. Anita and Ranita were partners in a firm sharing proits and losses in the ratio of 7:3.
    Their capitals on 1.1.96 were Rs.80,000 and Rs.60,000 respectively. Their partnership
    deed provided for the following:
    1. Interest on capital at 10% p.a
    2. Interest on drawings at 12% p.a
    3. Anita and Ranita to get a salary of Rs.10,000 each per annum.
    4. Anita to get a commission of 10% on the net profit before charging such commission.

    The profit of the firm for 1996 before making the above adjustments was Rs.60,000. Drawings of
    the partners during the year were Anita Rs.12,000 and Ranita Rs.8,000.
    Show the profit & loss appropriation account and capital accounts of the partners assuming that
    their capitals are fluctuating. (5)

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