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Test Your Understanding - State the …

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Test Your Understanding - State the title of the accounts affected, type of account and the account to be debited and account to be credited : 1. Bhanu commenced business with cash 2. Purchased goods on credit from Ramesh 1.00,000 40.000 3. Sold goods for cash 30.000 4. Paid salaries 3.000 5. Furniture purchased for cash 10,000

Posted by Suraj Yadav 4 years, 2 months ago

CBSE > Class 11 > Accountancy

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Illustration 62. Given below is the Balance Sheet of Krishna & Suresh who are partners in a firm sharing profits in the ratio of 3 : 2: Liabilities Amount Creditors Bank Overdraft Investment Fluctuation Fund Contingency Reserve Capital A/c : Krishna Suresh 30,000 20,000 21,000 2,000 6,000 5,000 50,000 84,000 Assets Plant Patents Furniture Investments (Market value Stock Debtors Cash 14,000) Amount (₹) 30,000 5,000 3,000 15,000 13,000 17,000 1,000 84,000 Mohan is admitted as a partner for 1/5th share on the following terms: (a) He is to contribute 14,000 as his share of capital which includes his share of premium for goodwill. (b) Goodwill is valued at 2 years' purchase of the average profits of the last 4 years, which were 10,000; 9,000; 8,000 and 13,000 respectively. (c) Plant to be written down to 25,000 and patents written up by * 8,000. Prepare the Revaluation Account, Partners' Capital Account and the Balance Sheet of the new firm.

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