Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem 1: P, Q and R are the partners sharing profits and losses in the ratio of 5:3:2. From 1st January, 2006, they decide to share the profits and losses in equivalent proportion. The partnership deed gives that in the event of any modification in profit sharing ratio, the goodwill must be valued at three year’s purchase of the average of five year’s profits. The profits and losses of the prior 5 years are:

Profits: 2001 - Rs. 60,000; 2002 Rs. 1,50,000; 2003 - Rs. 1,70,000; 2004 - Rs. 1,90,000.
Loss : 2005 - Rs. 70,000.

Provide the obligatory journal entry to record the above change.

problem 2: A company took a loan of Rs. 5,00,000 from the Bank and issued 10% debentures of Rs. 8,00,000 of  Rs. 100 each as a collateral security. Describe how you will deal with the issue of debentures in the books of company.

problem 3: Alpha Ltd. Consists of 5,000 8% Debentures of Rs. 100 each due for redemption on March31, 2007. Suppose that Debenture Redemption Reserve consists of a balance of Rs. 1,90,000 on that date. Record the essential entries at the time of redemption of debentures.

problem 4: What journal entries must be made for the issue of debentures in the given cases:

a) X Limited issued 30,000 12% Debentures of Rs. 100 each at par, redeemable at a premium of 5%.
b) Y Limited issued 50,000 12% Debentures of Rs 100 each at a premium of 5%, redeemable at par.

problem 5: A and B Share profits and losses in the ratio of 5:2. They have decided to dissolve the firm. Assets and external liabilities have been transferred to Realization account. Pass the journal entries to effect the given:

a) Bank Loan of Rs. 12,000 is paid off.
b) A was to bear all expenditures of realization for which he is given a commission of Rs. 400/-
c) Deferred Advertisement Expenditure account appeared in the books at Rs. 28,000.
d) Stock worth Rs. 1,600 was taken over by B at Rs. 1,200.
e) An unrecorded computer realized Rs. 7000.
f) There was an outstanding bill for repairs for Rs. 2000, which was paid off.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M97765

Have any Question? 


Related Questions in Accounting Basics

Descriptionbond valuation the pennington corporation issued

Description BOND VALUATION The Pennington Corporation issued a new series of bonds on January 1, 1990. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2019. Coupon payments ...

Assignment - auditing acct30001 during the last 12 months

Assignment - Auditing ACCT3000 1. During the last 12 months, Pacific Water Designs Ltd (PWD) profits have increased because of a significant drop in the cost of component parts from Germany as well as the introduction of ...

The assignment will require the group to undertake research

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that you have chosen. The assignment aims ...

Bull explain how the magnetic audit trail functionsbull are

• Explain how the magnetic audit trail functions. • Are large batch sizes preferable to small batch sizes? Explain. • Discuss why an understanding of legacy system technologies is of some importance to auditors. • If an ...

Practice questionsconsider a business where you have had

Practice questions: Consider a business where you have had work experience or any other organisation with which you are familiar. What aspects of the business do you think are important which are not shown in the financi ...

Salem company started its operations on january 1 2016 the

Salem Company started its operations on January 1, 2016. The following transactions took place during the first month of operations: Jan 1: Saleminvests $480,000 cash to start the business. Jan 5: Purchased furniture for ...

Practice questionsdescribe the information needs of three

Practice questions: Describe the information needs of three different types of users of financial information and discuss how well these needs are met by the annual report and accounts.

Accounting concepts individual problem setshort answer

Accounting Concepts Individual Problem Set Short Answer Questions- 1. True or false? The entity concept tells us that we should not co-mingle resources of one entity with another entity's resources. Explain your answer. ...

How many postings to fees earned for the month would be

How many postings to Fees Earned for the month would be needed in Eye Opener 3 if the procedure described in (a) Had been used; if the procedure described in (b) Had been used?

Assignment 1- q1 abc co has an account payable of 7700 due

ASSIGNMENT 1- Q1. ABC, Co. has an account payable of $7,700 due XYZ, Inc. , one of its suppliers.  The amount was due to be paid on October 15, 2013.  ABC, Co. only had enough cash on hand then to pay $1,700 of the amoun ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate