SOLUTIONS TO PARTNERSHIP LECTURE QUESTION

QUESTION 2

Goodwill account opened

GOODWILL A/C
$ $
Cap a/c- Vanturia (3/10) 7,200 Balance c/d 24,000
Cap a/c- Aparecida (2/10) 4,800
Cap a/c- Fraga (5/10) 12,000

24,000 24,000

CAPITAL A/C
Vanturia Aparecida Fraga Vanturia Aparecida Fraga
Bal. c/d 37,200 24,800 62,000 Bal b/d 30,000 20,000 50,000
Goodwill 7,200 4,800 12,000

37,200 24,800 62,000 37,200 24,800 62,000

Bal. b/f 37,200 24,800 62,000

BALANCE SHEET AS AT APRIL 1, 2003

$ $
Goodwill 24000
Net Assets 100,000
124,000

Equity and Liabilities

Capital
Vanturia 37,200
Aparecida 24,800
Fraga 62,000
124,000

Goodwill account not opened

GOODWILL A/C
$ $
Cap a/c- Vanturia (3/10) 7,200 Cap a/c- Vanturia (4/8) 12,000
Cap a/c- Aparecida (2/10) 4,800 Cap a/c- Aparecida (1/8) 3,000
Cap a/c- Fraga (5/10) 12,000 Cap a/c- Fraga (3/8) 9,000

24,000 24,000

CAPITAL A/C
Vanturia Aparecida Fraga Vanturia Aparecida Fraga
Goodwill 12000 3000 9000 Bal b/d 30,000 20,000 50,000
Bal. c/d 25,200 21,800 53,000 Goodwill 7,200 4,800 12,000

37,200 24,800 62,000 37,200 24,800 62,000

Bal. b/f 25,200 21,800 53,000

BALANCE SHEET AS AT APRIL 1, 2003

$ $
Net Assets 100,000
100,000

Equity and Liabilities

Capital
Vanturia 25,200
Aparecida 21,800
Fraga 53,000
100,000

QUESTION 3

PREMISES A/C
$ $
Balance b/d 11,000 Balance c/d 18,000
Revaluation 7,000
18,000 18,000
Balance b/f 18,000

MACHINERY A/C
$ $
Balance b/d 4,000 Revaluation 1,000
Balance c/d 3,000
 4,000 4,000
Balance b/f 3,000

MOTOR CAR A/C

$ $
Balance b/d 800 Revaluation 400
Balance c/d 400
800 800
Balance b/f 400

CASH A/C
$ $
Balance b/d 3,700 Balance c/d 7,700
Capital a/c - Chet 4,000
7,700 7,700
Balance b/f 7,700

REVALUATION A/C
$ $
Machinery 1,000 Premises 7,000
Motor car 400
Cap a/c- Frank (3/4) 4,200
Joe (1/4) 1,400
7,000 7,000

CAPITAL A/C
Frank Joe Chet Frank Joe Chet
Bal. c/d 14,200 6,400 4,000 Bal b/d 10,000 5,000
Cash 4,000
Reval. Profit 4,200 1,400
14,200 6,400 4,000 14,200 6,400 4,000
Bal. b/f 14,200 6,400 4,000

THE HARDY BOYS

BALANCE SHEET AS AT JANUARY 1, 1995
$ $
Non-Current Assets
Premises 18,000
Machinery 3,000
Motor Car 400 21,400

Current Assets
Cash 7,700
TOTAL ASSETS 29,100

Equity and Liabilities

Capital
Frank 14,200
Joe 6,400
Chet 4,000 24,600

Current Liabilities
Creditors 4,500
29,100

QUESTION 4

REALISATION A/C
$ $
Premises 30,000 Cap a/c - Black (M Car) 15,000
Equipment 20,000 Bank a/c - Premises 30,000
Motor Car 10,000 Bank a/c - Equipment 20,000
Stock 1,500 Bank a/c - Debtors 800
Debtors 800 Cap a/c - Young (stock) 1,000
Capital a/cs - Young(3/6) 2,250
Gifted(2/6) 1,500
Black(1/6) 750
66,800 66,800

CAPITAL A/C
Young Gifted Black Young Gifted Black
Real. a/c - Car 15,000 Bal b/d 35,000 15,000 13,000
Real. a/c-stock 1,000 Current a/cs 6,000 3,000 1,000
Cash 42,250 19,500 Real. Profit 2,250 1,500 750
Cash 250
43,250 19,500 15,000 43,250 19,500 15,000

CASH A/C
$ $
Balance b/d 12,000 Creditors 1,300
Real. a/c - Premises 30,000 Capital a/c - Young 42,250
Real. a/c - Equipment 20,000 Capital a/c - Gifted 19,500
Real. a/c - Debtors 800
Capital a/c - Black 250
63,050 63,050