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A Debt to third parties, due to partners for advances, to each partner on account of capital, residue to be divided amongst partners in profit sharing ratio B Debt to parties, account of capital of each partner, advances given by partners, residue to be divided amongst partners in profit sharing ratio C Debt to parties, balance from P&L account amongst partners in their profit sharing ratio
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On dissolution of firm, when assets are distributed, liabilities are disposed in a proper order wherein payment to third party debt is on priority, followed by amount due to partners and in the end the residual amount is divided amongst the partners in profit sharing ratio.
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Following is the Balance Sheet of A and B , who shared Profits and Losses in the ratio of 2 : 1 , as at 1st April, 2018: BALANCE SHEET OF A AND B as on 1st April, 2018 Liabilities ₹ Assets ₹ Capital A/cs: Land ad Buildings 2,90,000 A 3,00,000 Furniture 80,000 B 2,00,000 5,00,000 Stock 2,40,000 Reserve 1,50,000 Debtors 1,50,000 8,50,000 8,50,000 On the above date , the partners changed their profit-sharing ratio to 3 : 2 . For this purpose, the goodwill of the firm was valued at ₹ 3,00,000 . The partners also agreed for the following:Creditors 2,00,000 Bank 60,000 Cash 30,000
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Following is the Balance Sheet of A and B, who shared Profits and Losses in the ratio of 2 : 1, as at 1st April, 2019: BALANCE SHEET OF A AND B as on 1st April, 2019 Amount (₹) On the above date, the partners changed their profit-sharing ratio to 3 : 2. For this purpose, the goodwill of the firm was valued at ₹ 3,00,000. The partners also agreed for the following:Liabilities Amount
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Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
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Why is Reserves and Surplus credited to the old Partners' Capital Accounts in their old profit sharing ratio at the time of admission of a partner?
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Following is the Balance Sheet of A and B , who shared Profits and Losses in the ratio 2:1 as at 1st April, 2018 : On the above date, the partners changed their profit-sharing ratio to 3:2 . For this purpose, the goodwill of the firm was valued at Rs. 3,00,000 . The partners also agreed for the following :Liabilities Rs. Assets Rs. Capital A/cs
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Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
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