Laurel and Hardy are partners of the firm LH & Co. From 1-4-2011. Initially both of them contributed $ 1,00,000 each as capital. They did not contribute any capital thereafter. They maintain accounts...


Laurel and Hardy are partners of the firm LH & Co. From 1-4-2011. Initially both of them contributed $<br>1,00,000 each as capital. They did not contribute any capital thereafter. They maintain accounts of the<br>firm on mercantile basis. They were sharing profits and losses in the ratio of 5:4. After the accounts for<br>the year ended 31-3-2015 were finalised, the partners decided to share profits and losses equally with<br>effect from 1-4-2011. It was also discovered that in ascertaining the results in the earlier years certain<br>adjustments, details of which are given below, had not been noted.<br>Year ended 31s* March<br>2012<br>2013<br>2014<br>2015<br>$<br>$<br>Profit as per accounts prepared and finished<br>1,40,000<br>2,60,000<br>3,20,000 3,60,000<br>Expenses not provided for ( as 31* March)<br>30,000<br>20,000<br>36,000<br>24,000<br>Income not taken into account ( as at 31t* March) 18,000<br>15,000<br>12,000<br>21,000<br>Following is the Balance Sheet of the firm as on 31-3-2015 before adjustments of revised profits<br>between Laurel and Hardy.<br>BALANCE SHEET LH & CO.<br>as at 31-3-2015<br>Liabilities<br>Assets<br>Plant and Machinery<br>Capital Accounts :<br>Laurel<br>Hardy<br>Sundry Creditors<br>2,11,500 Cash in hand<br>1,51,500 Cash at Bank<br>2,27,000 | Stock in Trade<br>Sundry Debtors<br>60,000<br>10,000<br>5,000<br>3,10,000<br>2,05,000<br>5,90,000<br>5,90,000<br>You are required to prepare (1) Profit and Loss Account; (1I) Capital Accounts of the partners.<br>

Extracted text: Laurel and Hardy are partners of the firm LH & Co. From 1-4-2011. Initially both of them contributed $ 1,00,000 each as capital. They did not contribute any capital thereafter. They maintain accounts of the firm on mercantile basis. They were sharing profits and losses in the ratio of 5:4. After the accounts for the year ended 31-3-2015 were finalised, the partners decided to share profits and losses equally with effect from 1-4-2011. It was also discovered that in ascertaining the results in the earlier years certain adjustments, details of which are given below, had not been noted. Year ended 31s* March 2012 2013 2014 2015 $ $ Profit as per accounts prepared and finished 1,40,000 2,60,000 3,20,000 3,60,000 Expenses not provided for ( as 31* March) 30,000 20,000 36,000 24,000 Income not taken into account ( as at 31t* March) 18,000 15,000 12,000 21,000 Following is the Balance Sheet of the firm as on 31-3-2015 before adjustments of revised profits between Laurel and Hardy. BALANCE SHEET LH & CO. as at 31-3-2015 Liabilities Assets Plant and Machinery Capital Accounts : Laurel Hardy Sundry Creditors 2,11,500 Cash in hand 1,51,500 Cash at Bank 2,27,000 | Stock in Trade Sundry Debtors 60,000 10,000 5,000 3,10,000 2,05,000 5,90,000 5,90,000 You are required to prepare (1) Profit and Loss Account; (1I) Capital Accounts of the partners.

Jun 10, 2022
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