CSS Forums

CSS Forums (http://www.cssforum.com.pk/)
-   Accounting & Auditing (http://www.cssforum.com.pk/css-optional-subjects/group-i/accounting-auditing/)
-   -   Partnership question 2016 (http://www.cssforum.com.pk/css-optional-subjects/group-i/accounting-auditing/118528-partnership-question-2016-a.html)

Fatima Saleem Friday, January 05, 2018 12:44 AM

Partnership question 2016
 
Pool and Burns, who share profits and losses equally, decide to dissolve their
partnership at June 30, 2015. Their balance sheet on that date was as follows:
(Rs.) ( Rs.)
Buildings 80,000
Tools and fixtures 2,900
82,900
Debtors 8,400
Cash 600
9,000
Sundry creditors ( 4,100 )
Net current assets 4,900
Total Assets 87,800
Capital account. Pool 52,680
Burns 35,120
87,800
The debtors realized Rs. 8,200, the building Rs. 66,000 and tools and fixtures Rs. 1,800.
The expenses of dissolution were Rs. 400 and discounts totaling Rs. 300 were received
from creditors.
Required: Prepare the accounts necessary to show the results of the realization and of
the disposal of the cash.

Fatima Saleem Friday, January 05, 2018 01:35 AM

Please tell with which ratio last cash distribution was made to the partners
 
[IMG]https://ibb.co/nujRSG[/IMG]

Fatima Saleem Friday, January 05, 2018 01:37 AM

[IMG]https://ibb.co/nujRSG[/IMG]

Recluse Tuesday, January 09, 2018 05:40 PM

~
 
Hello Fatima. The last cash distribution is not made by any ratio. Whatever is in their capital accounts is distributed to the partners i.e. Pool's Share would be 44,980 and Burns' Share would be 27,240

imranazizpkswl Tuesday, December 11, 2018 03:24 AM

Discount Received
 
[QUOTE=Fatima Saleem;1053957]Pool and Burns, who share profits and losses equally, decide to dissolve their
partnership at June 30, 2015. Their balance sheet on that date was as follows:
(Rs.) ( Rs.)
Buildings 80,000
Tools and fixtures 2,900
82,900
Debtors 8,400
Cash 600
9,000
Sundry creditors ( 4,100 )
Net current assets 4,900
Total Assets 87,800
Capital account. Pool 52,680
Burns 35,120
87,800
The debtors realized Rs. 8,200, the building Rs. 66,000 and tools and fixtures Rs. 1,800.
The expenses of dissolution were Rs. 400 and discounts totaling Rs. 300 were received
from creditors.
Required: Prepare the accounts necessary to show the results of the realization and of
the disposal of the cash.[/QUOTE]

In this question, the issue only prevails in the treatment of discount received 300 rupees. I believe its treatment will base on following entry; discount received 300 (dr) capital-pool 300 (Cr) and discount received debit 300 and burns account credit. In this way, you will be able to treat this transaction into capital account with balance b/d of owners. So, the remaining part of sundry creditors will be treated with its real value which is 3800 after discount. Hope this answer will satisfy you. Thanks


11:38 PM (GMT +5)

vBulletin, Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.