X and Y were carrying on business in partnership sharing profits and losses in the ratio of 3/5 and 2/5. On Mar 31, 20–, they transferred their business to Alpha RT Ltd. The Balance Sheet of X and Y as on Mar 31 was as follows:
|
Liabilities Don't use plagiarized sources. Get Your Custom Essay on
land 50 building 125 stocks 93 75 machinery 20 less debtors rs 42 500 goodwill rs 30 609149
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|
Rs |
Assets |
Rs |
|
X”s Capital |
1,50,000 |
Land |
25,000 |
|
Y”s Capital |
75,000 |
Building |
1,00,000 |
|
Sundry Creditors |
40,000 |
Machinery |
50,000 |
|
Stocks |
40,000 |
||
|
Debtors |
45,000 |
||
|
Cash |
5,000 |
||
|
2,65,000 |
2,65,000 |
The company took the following assets at the following valuation:
Land 50%; Building 125%; Stocks 93.75%; Machinery 20% less; Debtors Rs 42,500; Goodwill Rs 30,000. Creditors were paid 93.75% in full and final settlement. Company paid Rs 25,000 in fully paid 25,000 equity, shares of Rs 10 each and balance in cash. Expenses of transfer amounted to Rs 2,500.
Prepare ledger accounts in the books of the firm and make opening entities in the books of a company.
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