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A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under :
Liabilities
(Rs.)
Assets
(Rs.)
Capitals:
(Rs.)
Land
60,000
A
1,30,000
Buildings
88,000
B
70,000
2,00,000 Machinery
40,000
Reserve Fund
24,000 Stock
20,000
Creditors
16,000 Debtors
18,000
Cash & Bank
14,000
2,40,000
2,40,000
They admit C on the following terms :
(a)
Profit sharing ratio of A, B and C was 7 : 5 : 3.
(b)
Land is valued at Rs. 76,000 and Building at Rs. 80,000.
(c)
A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was
passed for it.
(d)
Crete provisions for doubtful debts on debtors @ 4 %.
(e)
Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash.
(f)
C brought Rs. 60,000 as his capital.
Prepare Revaluation Account, Capital Accounts and Balance Sheet.
?
Most Upvoted Answer
A and B are partners sharing profits in ratio 5 : 3. Their Balance She...
16,000
Total 2,08,000 Total 2,08,000
The following adjustments are to be made:
1. Depreciate buildings by 10% and machinery by 20%.
2. Create a provision for doubtful debts at 5% on debtors.
3. A further sum of Rs. 4,000 is to be provided for income tax.
4. Interest on capital is to be allowed at 6% per annum.
5. A and B are to withdraw salary of Rs. 2,000 and Rs. 1,500 per month respectively.
6. The profits for the year ended on 31st March, 2021 were Rs. 60,000.
Prepare the Profit and Loss Appropriation Account and the partners' Capital Accounts after adjustments.
Solution:
Adjustments:
1. Depreciation:
Buildings: 10% of Rs. 88,000 = Rs. 8,800
Machinery: 20% of Rs. 40,000 = Rs. 8,000
2. Provision for Doubtful Debts:
5% of Rs. 18,000 = Rs. 900
3. Income Tax Provision:
Rs. 4,000
4. Interest on Capital:
A's capital = Rs. 1,30,000
B's capital = Rs. 70,000
Total capital = Rs. 2,00,000
6% interest on Rs. 1,30,000 = Rs. 7,800
6% interest on Rs. 70,000 = Rs. 4,200
Total interest = Rs. 12,000
5. Salary:
A's salary = Rs. 2,000 per month x 12 = Rs. 24,000
B's salary = Rs. 1,500 per month x 12 = Rs. 18,000
Total salary = Rs. 42,000
Profit and Loss Appropriation Account for the year ended 31st March, 2021:
Particulars Amount Particulars Amount To Depreciation- To Provision for Doubtful Debts- Buildings 8,800 Debtors 900 Machinery 8,000 To Income Tax Provision 4,000 To Interest on Capital 12,000 To Salary 42,000 To Net Profit transferred to Capital Accounts 85,300 Total 1,50,000 Total 1,50,000
Working Notes:
1. Depreciation:
Buildings:
10% of Rs. 88,000 = Rs. 8,800
Machinery:
20% of Rs. 40,000 = Rs. 8,000
2. Provision for Doubtful Debts:
5% of Rs. 18,000 = Rs. 900
3. Income Tax Provision:
Rs. 4,000
4. Interest on Capital:
A's capital = Rs. 1,30,000
B's capital = Rs. 70,000
Total capital = Rs. 2,00,000
6% interest on Rs. 1,30,000 = Rs. 7,800
Total 2,08,000 Total 2,08,000
The following adjustments are to be made:
1. Depreciate buildings by 10% and machinery by 20%.
2. Create a provision for doubtful debts at 5% on debtors.
3. A further sum of Rs. 4,000 is to be provided for income tax.
4. Interest on capital is to be allowed at 6% per annum.
5. A and B are to withdraw salary of Rs. 2,000 and Rs. 1,500 per month respectively.
6. The profits for the year ended on 31st March, 2021 were Rs. 60,000.
Prepare the Profit and Loss Appropriation Account and the partners' Capital Accounts after adjustments.
Solution:
Adjustments:
1. Depreciation:
Buildings: 10% of Rs. 88,000 = Rs. 8,800
Machinery: 20% of Rs. 40,000 = Rs. 8,000
2. Provision for Doubtful Debts:
5% of Rs. 18,000 = Rs. 900
3. Income Tax Provision:
Rs. 4,000
4. Interest on Capital:
A's capital = Rs. 1,30,000
B's capital = Rs. 70,000
Total capital = Rs. 2,00,000
6% interest on Rs. 1,30,000 = Rs. 7,800
6% interest on Rs. 70,000 = Rs. 4,200
Total interest = Rs. 12,000
5. Salary:
A's salary = Rs. 2,000 per month x 12 = Rs. 24,000
B's salary = Rs. 1,500 per month x 12 = Rs. 18,000
Total salary = Rs. 42,000
Profit and Loss Appropriation Account for the year ended 31st March, 2021:
Particulars Amount Particulars Amount To Depreciation- To Provision for Doubtful Debts- Buildings 8,800 Debtors 900 Machinery 8,000 To Income Tax Provision 4,000 To Interest on Capital 12,000 To Salary 42,000 To Net Profit transferred to Capital Accounts 85,300 Total 1,50,000 Total 1,50,000
Working Notes:
1. Depreciation:
Buildings:
10% of Rs. 88,000 = Rs. 8,800
Machinery:
20% of Rs. 40,000 = Rs. 8,000
2. Provision for Doubtful Debts:
5% of Rs. 18,000 = Rs. 900
3. Income Tax Provision:
Rs. 4,000
4. Interest on Capital:
A's capital = Rs. 1,30,000
B's capital = Rs. 70,000
Total capital = Rs. 2,00,000
6% interest on Rs. 1,30,000 = Rs. 7,800
Community Answer
A and B are partners sharing profits in ratio 5 : 3. Their Balance She...
Revaluation alc
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A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under :
Liabilities
(Rs.)
Assets
(Rs.)
Capitals:
(Rs.)
Land
60,000
A
1,30,000
Buildings
88,000
B
70,000
2,00,000 Machinery
40,000
Reserve Fund
24,000 Stock
20,000
Creditors
16,000 Debtors
18,000
Cash & Bank
14,000
2,40,000
2,40,000
They admit C on the following terms :
(a)
Profit sharing ratio of A, B and C was 7 : 5 : 3.
(b)
Land is valued at Rs. 76,000 and Building at Rs. 80,000.
(c)
A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was
passed for it.
(d)
Crete provisions for doubtful debts on debtors @ 4 %.
(e)
Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash.
(f)
C brought Rs. 60,000 as his capital.
Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)?
Question Description
A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under : Liabilities (Rs.) Assets (Rs.) Capitals: (Rs.) Land 60,000 A 1,30,000 Buildings 88,000 B 70,000 2,00,000 Machinery 40,000 Reserve Fund 24,000 Stock 20,000 Creditors 16,000 Debtors 18,000 Cash & Bank 14,000 2,40,000 2,40,000 They admit C on the following terms : (a) Profit sharing ratio of A, B and C was 7 : 5 : 3. (b) Land is valued at Rs. 76,000 and Building at Rs. 80,000. (c) A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was passed for it. (d) Crete provisions for doubtful debts on debtors @ 4 %. (e) Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash. (f) C brought Rs. 60,000 as his capital. Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under : Liabilities (Rs.) Assets (Rs.) Capitals: (Rs.) Land 60,000 A 1,30,000 Buildings 88,000 B 70,000 2,00,000 Machinery 40,000 Reserve Fund 24,000 Stock 20,000 Creditors 16,000 Debtors 18,000 Cash & Bank 14,000 2,40,000 2,40,000 They admit C on the following terms : (a) Profit sharing ratio of A, B and C was 7 : 5 : 3. (b) Land is valued at Rs. 76,000 and Building at Rs. 80,000. (c) A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was passed for it. (d) Crete provisions for doubtful debts on debtors @ 4 %. (e) Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash. (f) C brought Rs. 60,000 as his capital. Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under : Liabilities (Rs.) Assets (Rs.) Capitals: (Rs.) Land 60,000 A 1,30,000 Buildings 88,000 B 70,000 2,00,000 Machinery 40,000 Reserve Fund 24,000 Stock 20,000 Creditors 16,000 Debtors 18,000 Cash & Bank 14,000 2,40,000 2,40,000 They admit C on the following terms : (a) Profit sharing ratio of A, B and C was 7 : 5 : 3. (b) Land is valued at Rs. 76,000 and Building at Rs. 80,000. (c) A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was passed for it. (d) Crete provisions for doubtful debts on debtors @ 4 %. (e) Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash. (f) C brought Rs. 60,000 as his capital. Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)?.
A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under : Liabilities (Rs.) Assets (Rs.) Capitals: (Rs.) Land 60,000 A 1,30,000 Buildings 88,000 B 70,000 2,00,000 Machinery 40,000 Reserve Fund 24,000 Stock 20,000 Creditors 16,000 Debtors 18,000 Cash & Bank 14,000 2,40,000 2,40,000 They admit C on the following terms : (a) Profit sharing ratio of A, B and C was 7 : 5 : 3. (b) Land is valued at Rs. 76,000 and Building at Rs. 80,000. (c) A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was passed for it. (d) Crete provisions for doubtful debts on debtors @ 4 %. (e) Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash. (f) C brought Rs. 60,000 as his capital. Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under : Liabilities (Rs.) Assets (Rs.) Capitals: (Rs.) Land 60,000 A 1,30,000 Buildings 88,000 B 70,000 2,00,000 Machinery 40,000 Reserve Fund 24,000 Stock 20,000 Creditors 16,000 Debtors 18,000 Cash & Bank 14,000 2,40,000 2,40,000 They admit C on the following terms : (a) Profit sharing ratio of A, B and C was 7 : 5 : 3. (b) Land is valued at Rs. 76,000 and Building at Rs. 80,000. (c) A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was passed for it. (d) Crete provisions for doubtful debts on debtors @ 4 %. (e) Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash. (f) C brought Rs. 60,000 as his capital. Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under : Liabilities (Rs.) Assets (Rs.) Capitals: (Rs.) Land 60,000 A 1,30,000 Buildings 88,000 B 70,000 2,00,000 Machinery 40,000 Reserve Fund 24,000 Stock 20,000 Creditors 16,000 Debtors 18,000 Cash & Bank 14,000 2,40,000 2,40,000 They admit C on the following terms : (a) Profit sharing ratio of A, B and C was 7 : 5 : 3. (b) Land is valued at Rs. 76,000 and Building at Rs. 80,000. (c) A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was passed for it. (d) Crete provisions for doubtful debts on debtors @ 4 %. (e) Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash. (f) C brought Rs. 60,000 as his capital. Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)?.
Solutions for A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under :
Liabilities
(Rs.)
Assets
(Rs.)
Capitals:
(Rs.)
Land
60,000
A
1,30,000
Buildings
88,000
B
70,000
2,00,000 Machinery
40,000
Reserve Fund
24,000 Stock
20,000
Creditors
16,000 Debtors
18,000
Cash & Bank
14,000
2,40,000
2,40,000
They admit C on the following terms :
(a)
Profit sharing ratio of A, B and C was 7 : 5 : 3.
(b)
Land is valued at Rs. 76,000 and Building at Rs. 80,000.
(c)
A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was
passed for it.
(d)
Crete provisions for doubtful debts on debtors @ 4 %.
(e)
Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash.
(f)
C brought Rs. 60,000 as his capital.
Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under :
Liabilities
(Rs.)
Assets
(Rs.)
Capitals:
(Rs.)
Land
60,000
A
1,30,000
Buildings
88,000
B
70,000
2,00,000 Machinery
40,000
Reserve Fund
24,000 Stock
20,000
Creditors
16,000 Debtors
18,000
Cash & Bank
14,000
2,40,000
2,40,000
They admit C on the following terms :
(a)
Profit sharing ratio of A, B and C was 7 : 5 : 3.
(b)
Land is valued at Rs. 76,000 and Building at Rs. 80,000.
(c)
A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was
passed for it.
(d)
Crete provisions for doubtful debts on debtors @ 4 %.
(e)
Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash.
(f)
C brought Rs. 60,000 as his capital.
Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? defined & explained in the simplest way possible. Besides giving the explanation of
A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under :
Liabilities
(Rs.)
Assets
(Rs.)
Capitals:
(Rs.)
Land
60,000
A
1,30,000
Buildings
88,000
B
70,000
2,00,000 Machinery
40,000
Reserve Fund
24,000 Stock
20,000
Creditors
16,000 Debtors
18,000
Cash & Bank
14,000
2,40,000
2,40,000
They admit C on the following terms :
(a)
Profit sharing ratio of A, B and C was 7 : 5 : 3.
(b)
Land is valued at Rs. 76,000 and Building at Rs. 80,000.
(c)
A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was
passed for it.
(d)
Crete provisions for doubtful debts on debtors @ 4 %.
(e)
Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash.
(f)
C brought Rs. 60,000 as his capital.
Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)?, a detailed solution for A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under :
Liabilities
(Rs.)
Assets
(Rs.)
Capitals:
(Rs.)
Land
60,000
A
1,30,000
Buildings
88,000
B
70,000
2,00,000 Machinery
40,000
Reserve Fund
24,000 Stock
20,000
Creditors
16,000 Debtors
18,000
Cash & Bank
14,000
2,40,000
2,40,000
They admit C on the following terms :
(a)
Profit sharing ratio of A, B and C was 7 : 5 : 3.
(b)
Land is valued at Rs. 76,000 and Building at Rs. 80,000.
(c)
A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was
passed for it.
(d)
Crete provisions for doubtful debts on debtors @ 4 %.
(e)
Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash.
(f)
C brought Rs. 60,000 as his capital.
Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? has been provided alongside types of A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under :
Liabilities
(Rs.)
Assets
(Rs.)
Capitals:
(Rs.)
Land
60,000
A
1,30,000
Buildings
88,000
B
70,000
2,00,000 Machinery
40,000
Reserve Fund
24,000 Stock
20,000
Creditors
16,000 Debtors
18,000
Cash & Bank
14,000
2,40,000
2,40,000
They admit C on the following terms :
(a)
Profit sharing ratio of A, B and C was 7 : 5 : 3.
(b)
Land is valued at Rs. 76,000 and Building at Rs. 80,000.
(c)
A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was
passed for it.
(d)
Crete provisions for doubtful debts on debtors @ 4 %.
(e)
Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash.
(f)
C brought Rs. 60,000 as his capital.
Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? theory, EduRev gives you an
ample number of questions to practice A and B are partners sharing profits in ratio 5 : 3. Their Balance Sheet stood as under :
Liabilities
(Rs.)
Assets
(Rs.)
Capitals:
(Rs.)
Land
60,000
A
1,30,000
Buildings
88,000
B
70,000
2,00,000 Machinery
40,000
Reserve Fund
24,000 Stock
20,000
Creditors
16,000 Debtors
18,000
Cash & Bank
14,000
2,40,000
2,40,000
They admit C on the following terms :
(a)
Profit sharing ratio of A, B and C was 7 : 5 : 3.
(b)
Land is valued at Rs. 76,000 and Building at Rs. 80,000.
(c)
A Bill Receivable for Rs. 7,000 discounted from Bank was dishonoured on this date but no entry was
passed for it.
(d)
Crete provisions for doubtful debts on debtors @ 4 %.
(e)
Goodwill of firm was valued at Rs. 36,000, C brought his share of goodwill in cash.
(f)
C brought Rs. 60,000 as his capital.
Prepare Revaluation Account, Capital Accounts and Balance Sheet. Related: Adjustment of Revaluation of Assets and Liabilities (Part B)? tests, examples and also practice Commerce tests.
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