LIVE Course for free

Rated by 1 million+ students
Get app now
JEE MAIN 2023
JEE MAIN 2023 TEST SERIES
NEET 2023 TEST SERIES
NEET 2023
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
72 views
in Accounts by (15 points)
III. Som, Manan and Renu were partners sharing profits and losses in the ratio of \( 1: 2 \) : 2. Their capitals as on 1 st April, 2019 was \( ₹ 5,00,000 \) each. The books of account were closed on 31 st March each year. Renu died in an accident on 1 st July, 2020 leaving two children as her legal heirs The Partnership Deed had a clause as follows: "In the event of death of a partner, eldest legal heir of the deceased partner will be admitted as a partner for the share of the deceased partner." She had left a will to the effect that the amount due to her from the firm be transferred to Capital Account of the partner admitted from her family. While preparing the Statement of Account of Renu, following errors were noticed in the past years: - A car was purchased on 1 st April 2019 for ₹2,00,000 and was inadvertently debited to Travelling Expenses Account. The firm provides depreciation @.20\% p.a. by WDV method. - The firm had given loan of \( ₹ 2,00,000 \) to Som on 1st October, 2019 on which interest was to be [email protected]\% p.a. but was not charged. - Remuneration of \( ₹ 60,000 \) per annum to each partner for the year ended 31 st March, 2020 was not credited to their respective accounts. Divisible profit for the year ended 31 st March, 2020 of \( ₹ 2,10,000 \) was distributed equally. On the basis of above information, answer the following questions: 1 . What will be the effect of car purchase treated as revenue expense profit of the firm?

2. What is the effect of interest not charged on loan to Som and that of remuneration being not credited to each partner?

3. What will be the journal entries, if accounts of earlier years are not to be distributed

4. If the partners want to admit Pawan as partner but are not able to do so in view of restriction by partnership deed. Suggest if there's a way out.


Please log in or register to answer this question.

Related questions

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...