partnership Formation Exercise three 2015

Shamim collegiate
LA 54 block 15 gulshan e Mustafa
2st year commerce group Weekly test
Q1)Jan 1,2014  Abdul Rehman And Abdul Aziz  form a partnership by merging business. On this date their balance sheet items were as under :-

 Abdul Rehman
Abdul Aziz
Cash
13,000
8,000
Account receivable
20,000
15,000
Merchandise inventory
21,000
26,000
Furniture
20,000
10,000
Allowance for depreciation
-Furniture
5000
1000
Allowance for bad debt
1000
500
Account Payable
8,000
20,000
Abdul rehman Account receivable be valued at 18,000.Firmiture be valued at 12,000 Merchandise inventory be valued 22,000 and one half of the account payable be accepted
Abdul aziz  Account receivable be valued at 14,000.Firmiture be valued at 5,000 Merchandise inventory be valued 20,000 and three-fourth  of the account payable be accepted
It  was also decided that abdul aziz will invest sufficient cash to give him equal interest with Abdul rehman


2.Sana, Maha  and Iqra  form a partnership under the name of  M/S SMA
(i)                  Sana contribute cash rs 30,000 and transfer firm title of his office premises, the book value of which was 80,000. the mutually  agreed  to the value of  office to be 90,000
(ii)                Maha contribute cash 40,000 and hand over Office Equipment. The book value of which 30,000. they agreed to the value of  Office Equipment to be 35,000
(iii)               Iqra Contributed 50,000 and Supplies the book value 20,000. they agreed to the value of Supplies 25,000
Required
Give entries In General Journal of the new firm to record capital contributions by the partners and balance sheet
Ø      Q3)the following balance sheet

Fahad
Raheel
Cash
120,000
180,000
Account receivable
280,000
300,000
Merchandise inventory
90,000
150,000
Office furniture
200,000
220,000
Total assets
690,000
850,000
Account payable
90,000
120,000
Capital
600,000
730,000
Total equities
690,000
850,000




All assets and liabilities were taken over under name of Friend and Co Under  the following agreed valued
Fahad
ü      Account receivable be realized rs 240,000
ü      Merchandise inventory           be valued at rs 90,000
ü      Office furniture valued at 150,000
Raheel
ü      Account receivable be realized rs 250,000
ü      Merchandise inventory           be valued at rs 135,000
ü      Office furniture valued at 200,000
ü      Account payable is to be accepted
They further decided that they make capital of rs 550,000 and 650,000
Required
General journal and balance sheet


Ø      Waleed son of rizwan  were doing indepent bussiness from the years their financial position on january 01 2014 was as under
Waleed cash rs 70,000 account receivable rs 200,000 merchandise inventory rs 180,000         land rs 200,000 Office equipment  rs 250,000 , allowance for bad debts rs 40,000 Allowance for depreciation –equipment  rs 35,000 account payable 125,000
Rizwan cash rs 80,000 account receivable rs 260,000 merchandise inventory rs 120,000          land rs 150,000 Office equipment  rs 180,000 allowance for bad debts rs 90,000 Allowance for depreciation –equipment  rs 40,000 account payable 60,000
Father and son decided to form a partnership under the title name Rizwan & Sons All assets and liabilities were turned over under the following agreed valued


Waleed
Rizwan
Account receivable
130,000
180,000
Merchandise inventory
160,000
100,000
Land
250,000
180,000
Office equipment
200,000
150,000
Account payable
2/5
1/3

Required General journal and balance sheet 

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