Gaurav and Dinesh were carrying on business in partnership sharing profits and losses in the ratio of 3 : 2. On 31st March, 2023, their Balance Sheet stood as follows:
Gaurav and Dinesh were carrying on business in partnership sharing profits and losses in the ratio of 3 : 2. On 31st March 2023, their Balance Sheet stood as follows:
| Liabilities | ₹ | Assets | ₹ |
| Gaurav’s Capital
Dinesh’s Capital Bank Loan Sundry Creditors Bills Payable |
30,200 35,400 20,000 20,800 10,000 |
Land and Building
Furniture Stock Sundry Debtors Cash |
40,000 10,600 38,500 19,000 8,300 |
| 1,16,400 | 1,16,400 |
Umesh was admitted to the partnership on the following conditions:
(i) Umesh will get 1/3rd share in profits.
(ii) Umesh would bring ₹ 30,000 as Capital and ₹ 10,000 as Goodwill. However, he is able to bring capital but not his share of Goodwill.
(iii) Value of Land and Building will be increased by ₹ 10,000, that of Furniture will be reduced to ₹ 10,000 and Stock by 10%.
(iv) Provision for Doubtful Debts @ 5% of Sundry Debtors would be created.
(v) Bank Loan will be paid.
You are required to:
a) Prepare Revaluation Account, Cash Account, and Partner’s Capital Accounts
b) Show Balance Sheet of the new firm.
Anurag Pathak Changed status to publish July 17, 2023
