Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.
Sagot :
Let's approach this problem step by step.
### Revaluation of Assets and Liabilities
1. Depreciate Furniture by 10%:
- Original value of furniture: ₹10,000
- Depreciation (10% of ₹10,000): ₹1,000
- New value of furniture: ₹10,000 - ₹1,000 = ₹9,000
2. Appreciate Buildings by 20%:
- Original value of buildings: ₹40,000
- Appreciation (20% of ₹40,000): ₹8,000
- New value of buildings: ₹40,000 + ₹8,000 = ₹48,000
3. Decrease PDD to ₹2,000:
- Original PDD: ₹5,000
- New PDD: ₹2,000
- Gain in PDD: ₹5,000 - ₹2,000 = ₹3,000
4. Write off ₹2,000 from Creditors:
- Original value of creditors: ₹77,500
- Amount written off: ₹2,000
- New value of creditors: ₹77,500 - ₹2,000 = ₹75,500
### Revaluation Account
Revaluation Gains and Losses:
- Furniture Depreciation Loss: ₹1,000
- Buildings Appreciation Gain: ₹8,000
- PDD Gain: ₹3,000
- Creditors Write-off Gain: ₹2,000
Total Gain on Revaluation:
- Net Revaluation Gain: ₹8,000 (Buildings) + ₹3,000 (PDD) + ₹2,000 (Creditors) - ₹1,000 (Furniture) = ₹12,000
### Partners' Capital Accounts
Profit-sharing Ratio:
- Sun: 3/5
- Moon: 2/5
Distribution of Revaluation Gain:
- Sun's share: (3/5) × ₹12,000 = ₹7,200
- Moon's share: (2/5) × ₹12,000 = ₹4,800
Updated Capital Accounts:
- Sun's original capital: ₹60,000
- Moon's original capital: ₹30,000
- Star's capital contribution: ₹40,000 (capital) + ₹20,000 (goodwill)
New Capital Balances:
- Sun's final capital: ₹60,000 + ₹7,200 = ₹67,200
- Moon's final capital: ₹30,000 + ₹4,800 = ₹34,800
- Star's final capital: ₹40,000
### New Balance Sheet as on 01/04/2023
1. Capital Accounts:
- Sun: ₹67,200
- Moon: ₹34,800
- Star: ₹40,000
- Goodwill (Star): ₹20,000
- Total Capital: ₹67,200 + ₹34,800 + ₹40,000 + ₹20,000 = ₹162,000
2. Liabilities:
- Creditors: ₹75,500
- Reserves: ₹20,000
- Total Liabilities: ₹75,500 + ₹20,000 = ₹95,500
3. Assets:
- Cash at Bank: ₹21,500
- Stock: ₹39,000
- Debtors: ₹57,000 (Unchanged, as PDD adjustments are internal)
- Furniture: ₹9,000
- Buildings: ₹48,000
- Machinery: ₹25,000
- Total Assets: ₹21,500 + ₹39,000 + ₹57,000 + ₹9,000 + ₹48,000 + ₹25,000 = ₹199,500
### Summary:
Revaluation Account:
- Furniture Depreciation Loss: ₹1,000
- Buildings Appreciation Gain: ₹8,000
- PDD Gain: ₹3,000
- Creditors Write-off Gain: ₹2,000
- Revaluation Gain: ₹12,000
Partners' Capital Accounts:
- Sun: ₹67,200
- Moon: ₹34,800
- Star: ₹40,000
New Balance Sheet:
- Liabilities: ₹95,500
- Capital Total: ₹162,000
- Assets Total: ₹199,500
### Revaluation of Assets and Liabilities
1. Depreciate Furniture by 10%:
- Original value of furniture: ₹10,000
- Depreciation (10% of ₹10,000): ₹1,000
- New value of furniture: ₹10,000 - ₹1,000 = ₹9,000
2. Appreciate Buildings by 20%:
- Original value of buildings: ₹40,000
- Appreciation (20% of ₹40,000): ₹8,000
- New value of buildings: ₹40,000 + ₹8,000 = ₹48,000
3. Decrease PDD to ₹2,000:
- Original PDD: ₹5,000
- New PDD: ₹2,000
- Gain in PDD: ₹5,000 - ₹2,000 = ₹3,000
4. Write off ₹2,000 from Creditors:
- Original value of creditors: ₹77,500
- Amount written off: ₹2,000
- New value of creditors: ₹77,500 - ₹2,000 = ₹75,500
### Revaluation Account
Revaluation Gains and Losses:
- Furniture Depreciation Loss: ₹1,000
- Buildings Appreciation Gain: ₹8,000
- PDD Gain: ₹3,000
- Creditors Write-off Gain: ₹2,000
Total Gain on Revaluation:
- Net Revaluation Gain: ₹8,000 (Buildings) + ₹3,000 (PDD) + ₹2,000 (Creditors) - ₹1,000 (Furniture) = ₹12,000
### Partners' Capital Accounts
Profit-sharing Ratio:
- Sun: 3/5
- Moon: 2/5
Distribution of Revaluation Gain:
- Sun's share: (3/5) × ₹12,000 = ₹7,200
- Moon's share: (2/5) × ₹12,000 = ₹4,800
Updated Capital Accounts:
- Sun's original capital: ₹60,000
- Moon's original capital: ₹30,000
- Star's capital contribution: ₹40,000 (capital) + ₹20,000 (goodwill)
New Capital Balances:
- Sun's final capital: ₹60,000 + ₹7,200 = ₹67,200
- Moon's final capital: ₹30,000 + ₹4,800 = ₹34,800
- Star's final capital: ₹40,000
### New Balance Sheet as on 01/04/2023
1. Capital Accounts:
- Sun: ₹67,200
- Moon: ₹34,800
- Star: ₹40,000
- Goodwill (Star): ₹20,000
- Total Capital: ₹67,200 + ₹34,800 + ₹40,000 + ₹20,000 = ₹162,000
2. Liabilities:
- Creditors: ₹75,500
- Reserves: ₹20,000
- Total Liabilities: ₹75,500 + ₹20,000 = ₹95,500
3. Assets:
- Cash at Bank: ₹21,500
- Stock: ₹39,000
- Debtors: ₹57,000 (Unchanged, as PDD adjustments are internal)
- Furniture: ₹9,000
- Buildings: ₹48,000
- Machinery: ₹25,000
- Total Assets: ₹21,500 + ₹39,000 + ₹57,000 + ₹9,000 + ₹48,000 + ₹25,000 = ₹199,500
### Summary:
Revaluation Account:
- Furniture Depreciation Loss: ₹1,000
- Buildings Appreciation Gain: ₹8,000
- PDD Gain: ₹3,000
- Creditors Write-off Gain: ₹2,000
- Revaluation Gain: ₹12,000
Partners' Capital Accounts:
- Sun: ₹67,200
- Moon: ₹34,800
- Star: ₹40,000
New Balance Sheet:
- Liabilities: ₹95,500
- Capital Total: ₹162,000
- Assets Total: ₹199,500
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.