Amity University 2007 B.Com ACCOUNTANCY - Question Paper

Balance Sheet of A and B as on 31.3.2006

Liabilities Amt. Rs. Assets Amt. Rs.
Cash 10,000
Creditors 36,000 Debtors 34,000
Bills Payable
20,000
Stock 24,,000
General Reserve 24,000 Machinery 42,000
Capitals :
Rs.
A 1.50,000 Building 20,000
B 80,000
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2,30,000

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3,10,000

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3,10,000

The other terms of agreement on C’s admission were as follows:

C will bring Rs. 12,000 for his share of goodwill.
Building will be valued at Rs. 1, 85,000 and machinery at Rs. 40,000.
A provision of 6% will be created on debtors for bad debts.
Capital accounts of A and B will be adjusted by opening Current Accounts.
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of A, B and C.

Or

X, Y and Z were partners in a firm sharing profits in five : three : two ratio. On 31.3.2006 Z retired from the firm. On the date of Z’s retirement the Balance Sheet of the firm was as follows :

Balance Sheet of X, V and Z as on 31.3.2006

Liabilities Amt. Rs. Assets Amt. Rs.
Creditors 27,000
Bank 80,000
Bills Payable
13,000
Outstanding Rent 22,500 Debtors 20,000 24,,000
Less Provision for
Doubtful debts 500
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42,000
Provision for legal Claims
57,500 Stock 21,000
Capitals: Rs. Furniture 87,000
X 1,27,000 Land and Building 2,00,000
Y 90,000
Z 71,000
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2,88,000
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4,08,000 4,08,000

On Z’s retirement it was agreed that:

Land and Building will be appreciated by 5% and furniture will be depreciated by 20%.
Provision for doubtful debts will be made at 5% on debtors and provision for legal claims will be made Rs. 60,000.
Goodwill of the firm was valued at Rs. 60,000.
Rs. 70,000 from Z’s Capital Account will be transferred to his loan account and the balance will be paid to him by cheque.

Earning:   Approval pending.