Kavita and Arpita are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following is their Balance Sheet as at 31st March, 2023:
Kavita and Arpita are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following is their Balance Sheet as at 31st March, 2023:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs:
Kavita Arpita Creditors |
5,00,000 3,00,000 2,00,000 |
Building
Machinery Stock Debtors Investments Bank |
3,50,000 2,50,000 1,50,000 1,50,000 50,000 50,000 |
| 10,00,000 | 10,00,000 |
Barun is admitted as a partner on 1st April, 2023 on the following terms:
a) Barun is to pay ₹ 2,00,000 as Capital for 1/4th share. He also pays ₹ 50,000 as premium for Goodwill.
b) Debtors amounted to ₹ 30,000 is to be written off as bad and a Provision of 10% is created against Doubtful Debts on the remaining amount.
c) Entry has not been passed for a debt of ₹ 3,000 recovered by Kavita from a Customer, which was previously written off as bad in previous year. This amount is to be debited to his Current Account now.
d) Investments are taken by Arpita at their market value of ₹ 49,000 against payment.
You are required to prepare Revaluation Account, Partner’s Capital Accounts and new Balance Sheet.
Anurag Pathak Changed status to publish July 17, 2023
