prepare a statement showing distribution of cash with necessary workings.

A partnership firm has three partners : X, Y and Z with capitals as X : RS.  20,000; Y : RS. 10,000 and Z RS. 10,000. The creditors amounted to RS.  20,000 and sundry assets to RS.  60,000. In dissolution, the assets were realised as follows: 1st instalment RS.  20,000; 2nd instalment RS.  20,000 and final realisation ~ 10,000. The partners share profits and losses in the ratio of 3 : 2 : 1. Show the piece-meal distribution of the realisations on —- (i) Surplus Capital Method; (ii) Maximum Loss Method. 17. The firm of LMS was dissolved on 31.3.2015, at which date its Balance Sheet stood as follows :

 

 

Partners share profits equally. A firm of Chartered Accountants is retained to realise the assets and distribute the cash after discharge of liabilities. Their fees which are to include all expenses is fixed at RS. 1,00,000. No loss is expected on realisation since fixed assets include valuable land and building. Realisations are : Serial Number 1 2 3 4 5

Amount in RS.  3,00,000 15,00,000 15,00,000 30,00,000 30,00,000

The Chartered Accountant firm decided to pay-off the partners in ‘Higher Relative Capital Method’. You are required to prepare a statement showing distribution of cash with necessary workings.

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the auditor should ensure control testing is performed for periods both before and after the accounting change became effective.

A major change in the accounting system has taken place during the year. The effect on control testing is that: a. the auditor should ensure control testing is performed for….

select a sample of invoices relating to motor vehicle purchases and ensure they are correctly recorded on the non-current assets master file.

The following represents an existence test for property, plant, and equipment: a. select a sample of items of machinery in the factory and agree that they are correctly recorded in….

The control that would be the most effective in assuring that the proper custody of assets in the investing cycle is maintained is?

The control that would be the most effective in assuring that the proper custody of assets in the investing cycle is maintained is: a. the purchase and sale of investments….