A B and C were in partnership sharing profits in the ratio of 7 2 1 and the Balance Sheet of the fir......

93 views

Accountancy ( 12th) Dissolution of Partnership Firm Add to Study Deck

A, B and C were in partnership sharing profits in the ratio of 7 : 2 : 1 and the Balance Sheet of the firm as at 31st March, 2019 was:

Liabilities		Amount	Assets	Amount
Capital A/cs:			Building	20,000
A	12,410		Plant	31,220
B	8,650		Goodwill	10,000
C	80,620	1,01,680	100 Shares in X Ltd. At cost	2,400
Creditors		11,210	1,000 Shares in Y Ltd. At cost	10,000
Reserve for Depreciation on Plant		20,000	Stock	11,240
			Debtors	8,740
			Bank	1,210
			Patents	38,080
		1,32,890		1,32,890

It was agreed to dissolve the partnership as on 31st March, 2019 and the terms of dissolution were− a A to take over the Building at an agreed amount of 31,500.

b B, who was to carry on the business, to take over the Goodwill, Stock and Debtors at book value, the Patents at 30,000 and Plant at 5,000. He was also to pay the Creditors. c C to take over shares in X Ltd. at 15 each.

d The shares in Y Ltd. to be divided in the profit-sharing ratio.

Show Ledger Accounts recording the dissolution in the books of the firm.

Modal Answer available50 Edu-coins Required worth Rs 5

View Now

By: Aman

Profile ResourcesReport error

Prepare Micro Course

Dissolution of Partnership Firm

Accountancy ( 12th)

Submit Error

Let's Discuss

Post Comment