Mention the net amount of 'Source' or 'Use' of cash when a fixed asset (having book value of Rs. 15,000) is sold at a loss of Rs. 5,000.

Parth, Raman and Zaisha are partners in a firm manufacturing furniture. They have been sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2017 they decided to share future profits and losses in the ratio of 2 : 5 : 3. Their Balance Sheet showed a debit balance of Rs. 4,000 in Profit & Loss Account, balance of Rs. 36,000 in General Reserve and a Balance of Rs. 12,000 in Workmen's Compensation Reserve. It was agreed that - (i) The goodwill of the firm be valued at Rs. 76,000. (ii) The Stock (book value of Rs. 40,000) was to be depreciated by 8% (iii) Creditors amounting to Rs. 900 were not likely to be claimed. (iv) Claim on account of Workmen's Compensation amounted to Rs. 20,000 (v) INvestments (book value Rs. 38,000) were revalued at Rs. 40,000. Pass necessary Jouranl entries for the above.

Devinder had among other assets, machinery at a gross value of Rs 5,00,000 on which accumulated depreciation amounted to Rs 2,00,000. A machine purchased for Rs 2,00,000 having accumulated depreciation amounted to Rs 80,000 was sold during the year for Rs 1,35,000. You are required to determine the profit or loss on the machine sold sold by preparing the Asset Disposal Account.

Show the accounting equation on the basis of the following transactions and also show the Balance Sheet : (i) Started business with Cash Rs.60,000 and Goods Rs.30,000. (ii)Purchased goods for Cash Rs.40,000 and on Credit Rs. 25,000. (iii) Goods costing Rs. 48,000 sold at a profit of 33 1/3% . Three -fourth payment received in Cash (iv) Goods costing Rs. 20,000 sold at a loss of 5% , out of which Rs. 12,000 received in Cash. (v) Paid Rent Rs. 4,000 and Salary Rs. 6,000. (vi) Received Cash from Debtors Rs.15,000. (vii) Paid telephone bill amounting to Rs.800.

On March 31, 2017 after the close of accounts, the capitals of Mountain, Hill and Rock stood in the books of the firm at Rs. 4,00,000,Rs.3,00,000 and Rs. 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted to Rs. 1,50,000 and the partner’s drawings had been Mountain: Rs. 20,000, Hill Rs. 15,000 and Rock Rs. 10,000. Calculate interest on capital.