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Ganga and Jamuna are partners sharing profits in the ratio of 2 : 1. They admit Saraswati for 1/5th share in future profits. On the date of admission, Ganga’s capital was ₹ 1,02,000 and Jamuna’s Capital was ₹ 73,000. Saraswati brings ₹ 25,000 as her share of goodwill and she agrees to contribute proportionate capital in the new firm. How much capital will be brought by Saraswati?

Ans – c) Solution;- Total adjusted capital of the old partners = ₹ 1,02,000 + ₹ 73,000 + 25000 = ₹ 2,00,000 Combine profit share of old partners = 1 – 1/5 = 4/5 Total Capital of the firm =…

Ans – d) Explanation:- 1 Reserve funds are part of the accumulated profit. 2. Sacrificing Ratio = Old Ratio – New Ratio 3. Increase in the value of the liability is debited to Revaluation Account 4. Increase in the value…

Angle and Circle were partners in a firm. Their Balance Sheet showed Furniture at ₹ 2,00,000; Stock at ₹ 1,40,000; Debtors at ₹ 1,62,000 and Creditors at ₹ 60,000. Square was admitted and new profit sharing ratio was agreed at 2 : 3 : 5. Stock was revalued at ₹ 1,00,000, Creditors of ₹ 15,000 are not likely to be claimed, Debtors for ₹ 2,000 have become irrecoverable and Provision for doubtful debts to be provided @ 10%. Angle’s share in loss on revaluation amount to ₹ 30,000. Revalued value of Furniture will be

Ans – d) Solution:- Revaluation loss = 30,000 × 2 = ₹ 60,000 Particulars ₹ Particulars ₹ To Furniture A/c (B/f) Stock A/c To Debtors A/c To Provision for doubtful Debts A/c   17,000 40,000 2,000 16,000 By Creditors A/c…