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Garner vs murray

988 views 1 replies

Uma

Student

21 Points Joined March 2019

Hi. Can someone please help me with this sum. I get it upto the repair expense that should be taken to P&L i.e., Rs.14,580/-. However, what should be the carrying value of the machinery taken over? Thanks in advance.

Attached File : 2752777 20190328190533 advanced accounts.jpg downloaded: 109 times

Replies (1)

Prakash Gehani

Consultant & Teacher(Whatsapp 8718057907

1306 Points Joined November 2017

calculate net profit or loss due to unrecorded transaction and then adjust it against capital of partners then apply garner vs murray rule.

Dr. repairs 20000
cr. dep on rs. 20000 for 3 years
dr. stock overvalued Rs. 10000
net profit or loss will be adjusted in capital.

also deduct 10000 from namdev capital and then apply garner vs murray.