S & Y are partners with profit sharing ratio as 2:1. The position of the firm 31st December 2004 when they decided to dissolve the business was as follows: <table><thead><tr class="firstRow"><th style="text-align: left;">Liabilities</th><th style="text-align: left;">Rs.</th><th style="text-align: left;">Assets</th><th style="text-align: left;">Rs.</th><th style="text-align: left;"> </th></tr></thead><tbody><tr><td>Sundry Creditor</td><td>1,50,000</td><td>Plant & Machinery</td><td>2,50,000</td><td> </td></tr><tr><td>General Reserve</td><td>1,00,000</td><td>Furniture</td><td>40,000</td><td> </td></tr><tr><td>Capital Accounts:</td><td> </td><td style="word-break: break-all;">Stock</td><td style="word-break: break-all;">1,00,000</td><td style="word-break: break-all;"> </td></tr><tr><td>S quad2,20,000</td><td> </td><td>Debtors</td><td>2,00,000</td><td> </td></tr><tr><td>Y quad2,20,000</td><td>4,40,000</td><td>Cash at bank</td><td>1,00,000</td><td> </td></tr><tr><td>Total</td><td>6,90,000</td><td>Total</td><td>6,90,000</td><td> </td></tr></tbody></table> The details or realization was as follows: 1. S took over plant & machinery and furniture at book value less 10% 2. Y took over the stock at Rs. 1,75,000 3. Debtors realized Rs. 1,85,000 4. Sundry creditors were settled at a discount of 5% Required: Prepare necessary journal entries and ledger accounts to close the books of the firm.

Question

In: Other

S & Y are partners with profit sharing ratio as 2:1

S & Y are partners with profit sharing ratio as 2:1. The position of the firm 31^st December 2004 when they decided to dissolve the business was as follows:

Liabilities	Rs.	Assets	Rs.
Sundry Creditor	1,50,000	Plant & Machinery	2,50,000
General Reserve	1,00,000	Furniture	40,000
Capital Accounts:		Stock	1,00,000
S quad2,20,000		Debtors	2,00,000
Y quad2,20,000	4,40,000	Cash at bank	1,00,000
Total	6,90,000	Total	6,90,000

The details or realization was as follows:
1. S took over plant & machinery and furniture at book value less 10%
2. Y took over the stock at Rs. 1,75,000
3. Debtors realized Rs. 1,85,000
4. Sundry creditors were settled at a discount of 5%

Required: Prepare necessary journal entries and ledger accounts to close the books of the firm.

Solutions

Expert Solution

Amanda K answered 2 years ago

Next > < Previous

Related Solutions

Ahmed and Sahil are partners sharing profit in the ratio of 3: 2. They agree to...

Ahmed and Sahil are partners sharing profit in the ratio of 3: 2. They agree to admit Chirag for 1/5 share in future profit. Chirag brings SAR. 250,000 as capital and enable to bring her share of goodwill in cash, the goodwill of the firm to be valued at SAR. 180,000. At the time of admission goodwill existed in the books of the firm at SAR.80,000. 1. Make the journal entry related to the cash brought by Chirag (1 Point)...

X and Y are partners sharing profits and losses in the ratio of 2:3 with capitals of Rs.2,00,000

X and Y are partners sharing profits and losses in the ratio of 2:3 with capitals of Rs.2,00,000 and Rs.3,00,000 respectively. On 1st October, 2017, X and Y granted loans of Rs.80,000 and Rs.40,000 respectively to the firm. Show distribution of profits/losses for the ended 31st March, 2018 in each of the following alternative cases:Case 1. If the profits before interest for the year amounted to Rs. 21,000.Case 2. If the profits before interest for the year amounted to t...

Hazeer and Hiyam are partners sharing profits in the ratio of 2:1 respectively on 31st December...

Hazeer and Hiyam are partners sharing profits in the ratio of 2:1 respectively on 31st December 2019 they decided to dissolve the partnership. On that day, their balance sheet appeared as follows; Balance sheet of Hazeer and Hiyam as at 31st December 2019 Liabilities Amount Assets Amount (OMR) (OMR) Creditors 5000 3,000 Vehicle 12,000 Reserve Capital Debtors 7,500 Hazeer 22,000 Stock 2,500 Hiyam 28,000 50,000 Building 7,000 Machinery Cash at Bank 3,000 26,000 Total 58,000...

Togbi and Mama were partners sharing profits and losses in the ratio 2:1 respectively. The following...

Togbi and Mama were partners sharing profits and losses in the ratio 2:1 respectively. The following trial balance was extracted from their books on 31st December, 2004 Details GH¢ GH¢ Capital Accounts: Togbi 14,000 Mama 7,000 Drawings Accounts: Togbi 3,400 Mama 2,200 Current Accounts: Togbi 700 Mama 500 Office equipment at cost 1,144 Stock in trade (1/1/2004) 10,000 Trade Debtors and creditors 8,100 6,175 Purchases and sales 76,000 102,000 Freehold property 9,250 Wages and salaries 12,727 Rates...

Case 5. Faheem, Fahad and Faris are partners sharing profits in the ratio of 2:1:1. Faheem...

Case 5. Faheem, Fahad and Faris are partners sharing profits in the ratio of 2:1:1. Faheem decided to retire from the firm at that time the balances in their capital accounts stood at OMR 50,000, OMR 40,000 and OMR 30,000 respectively. It was decided that the amount payable to Faheem will be brought by Fahad and Faris in such a way as to make their capitals proportionate to their profit sharing ratio. After Faheem’s retirement, the new profit sharing ratio...

A, B are two partners sharing profits and losses in the ratio of 3:1

A, B are two partners sharing profits and losses in the ratio of 3:1. They admit K as a partner and he pays Rs. 30,000 as capital. The new ratio is to be 3:1:1. The goodwill of the firm is to be based on 3 years’ purchase of the average 4 years’ profits which are Rs. 15,000, 12,000, 18,000, 19,000.Required: Show the journal entries, if: (A) K pays for the goodwill in cash. (B) He is unable to bring the...

A, B and C are partners sharing profits and losses in the ratio of 60%,30% and...

A, B and C are partners sharing profits and losses in the ratio of 60%,30% and 10%. They decided to liquidate their business. The balance Sheet on the date of liquidation was as follows: Cash 20,000 Receivables 40,000 Other current assets 20,000 Machinery 80,000 Equipments 50,000 Land and building 300,000 Liabilities 150,000 Capital Account balances: A 200,000 B 124,000 C 36,000 C had become insolvent and was unable to pay towards any of his partnership debts. The assets and liabilities...

Leo, Amanda, and Nancy are partners with the following capital balances and profit-and-loss sharing ratios: Leo...

Leo, Amanda, and Nancy are partners with the following capital balances and profit-and-loss sharing ratios: Leo (30%) $500,000 Amanda (25%) 300,000 Nancy (45%) 650,000 Required: Prepare the journal entries to admit Tim into the partnership and calculate the partners’ capital balances immediately after his admission under each of the following independent scenarios: 1-Amanda assigns half of her interest to Tim for $200,000. (1 point) 2-Tim invests $100,000 cash in the partnership for a 20% interest in the partnership capital and...

Is Income tax expense or a profit-sharing?

Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided...

Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows. KENDRA, COGLEY, AND MEI Balance Sheet May 31 Assets Liabilities and Equity Cash $ 82,600 Accounts payable $ 246,000 Inventory 539,400 Kendra, Capital 75,200 Cogley, Capital 169,200 Mei, Capital 131,600 Total assets $ 622,000 Total liabilities and equity $ 622,000 Required: For each of the following scenarios, complete...

Subjects