Accounts test

Question 1 Following is the Balance Sheet of John and Jimmy as on 31st December 2010:
Liabilities

amount

Johns capital

50,000

Jimmys capital

35,000

Reserve

6,000

Creditors

25,000

Assets

amount

Goodwill

6,000

Land and building

40,000

Furniture

3,750

Stock

25,000

Debtors

20,000

Investments

15,250

Bank

4,500

Cash

1,500

1,16,000

1,16,000

The partners shared profits and losses in the ratio of 2:1. From 1st January, 2011.
They agreed to share profits and losses equally. For this purpose, the following
particulars are provided:
(a) Land and building are to be appreciated by 25% .
(b) Furniture valued at ` 3,250.
(c) Market value of stock is ` 22,500.
(d) A provision for bad debts @ 5% is to be created on debtor.
(e) Goodwill is valued at ` 15,000.
Show the revised Balance Sheet of the firm as on 1st January, 2011 along with
appropriate ledger accounts as proper working notes.
QUES 2. Ram and Shyam are partners sharing profit and loss in the
ration of 3:2. They admitted vinay . ram surrendered 1/6 th of his share
and shyam 1/3 rd of his share in favour of vinay. Goodwill of the firm
valued rs 1,20,000. Vinay bring in only of his share of goodwill in cash
and 1,00,000 as capital .