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Prepare Realisation Account, Partners' Capital Accounts, New Firm Account and Balance Sheet after amalgamation of M/s R & Co.
Accounting
ScanSolve AI Answer
To solve this problem, we need to prepare the Realisation Account, Partners' Capital Accounts, and the New Firm Account in the books of M/s R & Co., and then the Balance Sheet of the new firm after amalgamation.
Part 1: Ledger Accounts in the books of M/s R & Co.
First, we calculate the Purchase Consideration (PC) for M/s R & Co.
Calculation of Purchase Consideration for M/s R & Co.:
Assets taken over by the new firm:
- Premises (revalued): 15,000
- Computers (revalued): 7,000
- Stock (book value):
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