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Plz answer this q. — Leena, Madan and Naresh were partners in 'firmsharing profits and losses in the ratio of 2 2 : 3. On 31st March 2015 their falance Sheet was as follows: Liabilities Trade Creditors Bank overdraft Long—term Debts Rs Assets 1 60,000 Land and Building 44 , 00 my- •hibery 4:00, ÖO(J- mF niture Employees provident FuncU Leena Capital: Madan , ooo Naresh 31, 37 80,000 Investments losing Stock ndry Debtors Bank eferred Advertisement x nses 80,000 1 oo ooo 37.80 ooo On C/ådan retired from the firm and the remaining partners decided to carry on the buS)ness. It was decided to revalue assets and liabilities as under: (LiD- (ivy A€Land gnd Building be appreciated by Rs Machinery be depreciated 50% of Investments were taken over by the retiring partner at book value. An old customer Mohit whose account was written off as baddebts has promised to pay Rs 7,000 in settlement of his full debt of Rs 10,000. Provision for Doubtful Debts was to be made at 5% on debtors. Closing Stock Will be valued at market price which is RS 1 less thatthe boqk value.

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