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    2017 Partnership Past Question Solution Students

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    kimberlymohammed79

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    2017 Partnership Past Question Solution Students

    Uploaded by

    kimberlymohammed79
    5 views2 pages

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    2017 Partnership Past Question Solution students

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    5 views2 pages

    2017 Partnership Past Question Solution Students

    Uploaded by

    kimberlymohammed79

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Audrey, Camille, Robert Partnership

    DR REVALUATION ACCOUNT CR
    Particulars $ Particulars $
    Machinery 100 000 Land 300 000

    Provision for doubtful debt 10 000

    Inventory 10 000

    Gain on Revaluation:

    Capital A (3/6 x $180 000) 90 000

    Capital C (2/6 x $180 000) 60 000

    Capital R (1/6 x $180 000) 30 000

    300 000 300 000

    Part b

    Credit Side –

    • Start with opening capital balances (1,500,000 750,000 500,000)


    • Goodwill was 600,000 share according to the profit sharing ratio:
    = A (3/6 x 600,000) =300,000 C (2/6 x 600,000) =200,000 R (1/6 x 600,000) =100,000
    • Add gain from revaluation – 90,000 60,000 30,000 to get final totals on credit side

    Debit side –

    • Audrey is to leave the firm with a total of $1,890,000 in assets and close off their account. Of this
    amount They will be taking (200,000 in machinery and 250,000 in motor vehicle). This would leave
    a total of (1,890,000 -200,000 – 250,000) $1,440,000 in cash.
    • Goodwill – Audrey goodwill would be split amount the remaining partners and added to their good
    will in their new profit sharing ratio 2:1 (300,000 x 2/3 = 200,000) (300,000 x 1/3 = 100,000).
    Capital A/c
    A$ C$ R$ A$ C$ R$
    Plant and machinery 200 000 Balance b/d 1 500 000 750 000 500 000
    Motor Vehicle 250 000 Goodwill 300 000 200 000 100 000
    Goodwill 0 400 000 200 000 Gain on revaluation 90 000 60 000 30 000
    Cash 1 440 000
    Balance c/d 610 000 430 000
    1 890 000 1 010 000 630 000 1 890 000 1 010 000 630 000

    Capital A/c

    C$ R$ C$ R$
    Balance b/d 610 000 430 000

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