Rajesh and Ravi are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet stood as at 31st March, 2023:
Rajesh and Ravi are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet stood as at 31st March, 2023:
| Liabilities | ₹ | Assets | ₹ | |
| Creditors
Outstanding Rent Capital A/cs: Rajesh Ravi |
3,85,000
40,000 2,90,000 1,50,000 |
Cash
Stock Prepaid Insurance Debtors Machinery Building Furniture |
94,000
|
20,000
1,50,000 15,000 90,000 1,90,000 3,50,000 50,000 |
| 8,65,000 | 8,65,000 |
Raman is admitted as a new partner introducing a capital of ₹ 1,60,000. The new profit sharing ratio is decided as 5 : 3 : 2. Raman is unable to bring in goodwill. It is decided to value goodwill on the basis of Raman’s share in the profits and the capital contributed by him. Following revaluations are made:
(i) Stock to be reduced by 5%.
(ii) Provision for Doubtful Debts is to be ₹ 5,000.
(iii) Furniture to be reduced by 10%.
(iv) Building is valued at ₹ 4,00,000.
Show necessary Ledger Accounts and the Balance Sheet of the new firm.
Anurag Pathak Changed status to publish July 17, 2023
