hi friends
PROBLEM
M and S are partners sharing profits in the proportion of 2/3 and 1/3. Their Balance Sheet as at 31-3-1985, stands as under.
LIABILITIES ASSETS
Sundry creditors 44000 Cash at Bank 17000
Sundry Debtors 15000
Capital Account Bills Receivable 4000
M 30000 Stock 25000
S 20000 Furniture and fixtures 3000
Land and Buildings 30000
94000 94000
R is admitted to partnership with effect from 1st april on the following terms :
1. That there is likely to be a claim against the firm for damages for which a provision to the extent of
Rs.1,500 is to be made;
2. That a bill for Rs.300 for electric charges has been omitted to be accounted. It should, therefore,
now be provided for;
i want to this two adjustment journal entry. i have confussion of this two adjustments. please help me.
bye
krishna
CAclubindia
