Ishu and Vishu are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as follows:
Ishu and Vishu are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets |  | ₹ |
| Sundry Creditors
General Reserve Investments Fluctuation Reserve Capital A/cs: Ishu Vishu |
66,000 10,000 4,000 1,19,000 1,12,000 |
Cash at Bank
Sundry Debtors Investments (Market Value ₹ 19,000) Building Plant and Machinery |
42,000
|
87,000 35,000 21,000 98,000 70,000 |
| 3,11,000 | 3,11,000 |
Nishu was admitted on 1st April, 2023 for 1/6th share on the following terms:
(i) Nishu will bring ₹ 56,000 as his share of Capital.
(ii) Goodwill of the firm is valued at ₹ 84,000 and Nishu will bring his share of Goodwill in cash.
(iii) Plant and Machinery be appreciated by 20%.
(iv) All debtors are good.
(v) There is a liability of ₹ 9,800 included in Sundry Creditors that is not likely to arise.
(vi) Capitals of Ishu and Vishu will be adjusted on the basis of Nishu’s capital and any excess of deficiency will be made by withdrawing or bringing in cash by the concerned partner.
Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the firm after the above adjustments.
Anurag Pathak Changed status to publish July 17, 2023
