24 December 2010
N & P enters into partnership on 1/1/02 without agreement .N died on 31/9/02 Amt from cash sales deposited into bank after retains sum as follows business exp:rs 50- pr week personal exp -N 5000.P-6000
Paid into bank capital N 25000.P 20000 Collection from credit customer 27734 balance of cash sale 35000.
Payment from bank to suppler 45540 free hold permis 32000 furniture (1/7/02) 8000 s exp 2000
Additional info:- GP-20% during year cash discount allowed 2% and received 1% goods return to suppler 1000 and by customer 900 bad debt written off 800 on 31/12/02 36000 owing to suppler nd 5500 due from customer
On tht day agreement b/w P nd Ns executive is : a. Trading result aftr desperation on Furniture 10%pa should be presumed have been earned evenly for whole year b. No provision for discount c . Goodwill ignored d. as from 30.9.02 a interest of 10%pa in lieu of profit is to be allowed t Ns executive on amount due to him .. Prepare trading nd P&L and balance sheet 31/12/02
CAclubindia
