Cash
Debtors
Stock
Plant and Machinery
Land and Building
62,000
50,000
75,000
3,25,00
4,00,00 9,12,000
For the above purpose, it was agreed that
(a) Plant and machinery should be written down by Rs. 25,000.
(b) Stock is found overvalued by 10% . It was decided to reduced its value accordingly.
(c) Land and building has to be appreciated by 25%.
(d) Creditors amounting to Rs. 5,500 are not likely to claim their amount.
(e) Goodwill at the time of reconstitution, is to be valued at 3 year's purchase of average profits of last five years, which were Rs. 22,500.
You are required to give effect to the above adjustments
(i) By opening revaluation account (ii) By passing a single adjustment entry.
Can you explain me how this amount came in adjusting entry (with calculations) of Q14 of CBSE ABROAD SET 1 # urgent
Regards,
Naveed
Can you please solve this question for me
Thank you
Naveed
Balance Sheet
as at 31st March 2015
Rs.
Rs.
Outstanding Expenses
Archie 3,75,000
Betty 2,25,000
Veronica 2,00,000
1,00,000
12,000
8,00,000
9,12,000
Debtors
Stock
Plant and Machinery
Land and Building
62,000
50,000
75,000
3,25,00
4,00,00
9,12,000
For the above purpose, it was agreed that
(a) Plant and machinery should be written down by Rs. 25,000.
(b) Stock is found overvalued by 10% . It was decided to reduced its value accordingly.
(c) Land and building has to be appreciated by 25%.
(d) Creditors amounting to Rs. 5,500 are not likely to claim their amount.
(e) Goodwill at the time of reconstitution, is to be valued at 3 year's purchase of average profits of last five years, which were Rs. 22,500.
You are required to give effect to the above adjustments
(i) By opening revaluation account (ii) By passing a single adjustment entry.
i) Profit and Loss Account Rs 24,000.
ii) Advertisement Suspense Account Rs. 12,000.
Give adjustment entry for the above items.