Following data appears in the books of XY & Co. as on $31.03.2003$ .
Capital account = $R s 13, 00, 000$
Drawings account = $R s 12, 000$
Land & building account = $R s 10, 00, 000$
Goodwill account = $R s 3, 50, 000$
Suspense account(Dr) = $R s 50, 000$
Loss by theft account = $R s 20, 000$
Business loss = $R s 50, 000$
Loan given to AB & Co = $R s 60, 000$
What will be the amount of sundry creditors?

R s .2, 30, 000

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R s .1, 72, 000

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R s .3, 42, 000

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R s .2, 42, 000

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Solution

The correct option is D $R s .2, 42, 000$
Liabilities Amount Assets Amount
Capital Account 1300000 Land & Building 1000000
Less: Goodwill 350000
Loss by theft - 20000 Suspense A/c 50000
Business Loss -50000 Loan given to AB & Co. 60000
Drawings -12000
Balance in Capital A/c 1218000
Sundry Creditors
(balancing figure) 242000
Total 1460000 Total 1460000

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Similar questions

On scrutiny of the books of account, accountant found that, purchase return of Rs 1000 was omitted to be entered in the books of a/c. What shall be the rectifying entry for the same error.

Following is the Balance Sheet of A, B and C as at 31st March, 2011. They shared profits in the ratio of 2 : 2 : 1.

$\begin{matrix} Capital and Liabilities & Rs & Assets & Rs Sundry Creditors & 5, 00, 000 & Cash at Bank & 10, 000 General Reserve & 2, 50, 000 & Debtors & 6, 00, 000 Partners Loan A/cs : & Less : Provision for B & 1, 80, 000 & Doubtful Debts & (25, 000) - -------- - & 5, 75, 000 C & 1, 20, 000 - -------- - & 3, 00, 000 & Stock & 3, 40, 000 Capital A/cs : & Land & Buildings & 10, 00, 000 A & 5, 00, 000 & Advertisement Suspense A/c & 60, 000 B & 3, 00, 000 & Profit and Loss A/c & 15, 000 C & 1, 50, 000 - -------- - & 9, 50, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 20, 00, 000 - --------- - - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 20, 00, 000 - --------- - - --------- - \end{matrix}$

B retires on 1st April, 2011 on the following terms :

(i) Stock is overvalued by Rs 20,000 and land & buildings are undervalued by Rs 1,00,000.

(ii) Provision for doubtful debts is to be increased to Rs 30,000.

(iii) Old credit balances of Sundry Creditors Rs 40,000 be written off.

(iv) A computer purchased on 1st October, 2010 for Rs 50,000 debited to Office Expenses Account is to be brought into account charging depreciation @ 20% p.a.

(v) Goodwill of the firm is valued at Rs 1,50,000 and the amount due to B be adjusted in the capital accounts of A and C.

Prepare the Revaluation Account, Capital Accounts and the new Balance Sheet.

Following is the Balance Sheet of Jain, Gupta and Malik as on March 31, 2016.

Books of Jain, Gupta and Malik Balance Sheet as on March 31, 2016
Liabilities		Amount Rs	Assets	Amount Rs
Sundry Creditors		19,800	Land and Building	26,000
Telephone Bills Outstanding		300	Bonds	14,370
Accounts Payable		8,950	Cash	5,500
Accumulated Profits		16,750	Bills Receivable	23,450
			Sundry Debtors	26,700
Capitals :			Stock	18,100
Jain	40,000		Office Furniture	18,250
Gupta	60,000		Plants and Machinery	20,230
Malik	20,000	1,20,000	Computers	13,200
		1,65,800		1,65,800

The partners have been sharing profits in the ratio of 5:3:2. Malik decides to retire from business on April 1, 2016 and his share in the business is to be calculated as per the following terms of revaluation of assets and liabilities : Stock, Rs 20,000; Office furniture, Rs 14,250; Plant and Machinery Rs 23,530; Land and Building Rs 20,000.

A provision of Rs 1,700 to be created for doubtful debts. The goodwill of the firm is valued at Rs 9,000.

The continuing partners agreed to pay Rs 16,500 as cash on retirement of Malik, to be contributed by continuing partners in the ratio of 3:2. The balance in the capital account of Malik will be treated as loan.

Prepare Revaluation account, capital accounts, and Balance Sheet of the reconstituted firm.

Q. A & B having share capital of Rs.

10, 000

each, share profits and losses equally. They admit C as an equal partner and goodwill was valued as Rs.

30, 000

(book value NIL). C is to bring in Rs.

20, 000

as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not be shown in the books. If profit on revaluation is Rs.

13, 000

, find the closing balance of the capital account.

PRACTICAL PROBLEMS

X, Y and Z were carrying on business. They share profits and losses in the ratio of 5:3:2 respectively. Their Balance Sheet as on 31^st March, 2010 was as under:

Balance Sheet as on 31^st March, 2010
Liabilities	Amount Rs	Assets		Amount Rs
Sundry Creditors	21,000	Plant and Machinery		20,000
Y’s loan	5,000	Investment		8,000
Reserve fund	20,000	Stock		30,000
Capital Account:		Debtors	18,000
X	20,000	Less: R.D.D.	1,000	17,000
Y	10,000	Cash in hand		2,000
Z	4,000	Cash at Bank		3,000
	80,000			80,000

On the above date the firm was dissolved and the assets realised as under:

1) Investment Rs 5,000, Stock Rs 24,000 and Debtors Rs 15,000.

2) The Plant and Machinery was taken over by Mr. ‘X’ at book value.

3) Sundry Creditors and Mr. ‘Y’ loan were paid in full.

4) Realisation expenses incurred Rs 1,000.

Prepare Realisation Account, Partner’s Capital Account and Bank Account

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Liabilities	Amount	Assets	Amount
Capital Account	1300000	Land & Building	1000000
Less:		Goodwill	350000
Loss by theft	- 20000	Suspense A/c	50000
Business Loss	-50000	Loan given to AB & Co.	60000
Drawings	-12000
Balance in Capital A/c	1218000
Sundry Creditors (balancing figure)	242000
Total	1460000	Total	1460000