The following is the Balance Sheet of V. Fishy & Co. as at 31st December, 2014.
Balance Sheet as at 31st December, 2014
Liabilities
|
~
|
Assets
|
~
|
|
Capital : Mahseer
|
4,100
|
Machinery
|
5,000
|
|
Salmon
|
4,100
|
Furniture
|
2,800
|
|
Carp
|
4,500
|
Fixture
|
2,100
|
|
|
General Reserve
|
1,500
|
Cash
|
|
1,500
|
|
Creditors
|
2,350
|
Stock
|
|
950
|
|
|
|
Debtors
|
4,500
|
|
|
|
|
Less: Provision for Bad Debts
|
300
|
4,200
|
|
|
16,550
|
|
|
16,550
|
|
|
|
|
|
|
|
|
|
|
Carp died on 3rd January, 2015 and the following agreement was to be put into effect :
(a) Assets were to be revalued : Machinery to ~ 5,850; Furniture to ~ 2,300; Stock to ~ 750.
(b) Goodwill was valued at ~ 3,000 and Carp was to be credited with his share, without using a Goodwill Account.
(c) ~ 1,000 was to be paid away to the executors of the dead partner on 5th January, 2015.
You are required to show :
(i) The Journal Entry for Goodwill adjustment.
(ii) The Revaluation Account and Capital Accounts of the partners.
(iii) Which account would be debited and which account credited if the Provision for Bad Debts in the Balance Sheet was to be found unnecessary to maintain at the death of Carp ?