A and B are partners in a firm. Their Balance Sheet as at 31st March, 2022 was as follows: Capital: A ₹ 50,000 B ₹ 60,000
A and B are partners in a firm. Their Balance Sheet as at 31st March, 2022 was as follows:
| Liabilities | ₹ | Assets | ₹ |
|
Capital: A B |
50,000 60,000 |
Cash | 10,000 |
| Creditors | 15,000 | Sundry Debtors | 80,000 |
| Outstanding Exp. | 3,000 | Stock | 20,000 |
| Insurance Fund | 7,000 | Fixed Assets | 38,600 |
| Provident Fund | 1,000 | P & L A/c | 4,000 |
| Employees Saving Fund | 5,000 | ||
| Workmen Profit Sharing Fund | 2,000 | ||
| Workmen Compensation Reserve | 5,600 | ||
| Provision for Doubtful Debts | 4,000 | ||
| 1,52,600 | 1,52,600 |
C was taken into partnership as from 1.4.2022 on following terms for 1/6 share:
(1) C will bring ₹ 40,000 as his capital.
(2) Goodwill is valued at ₹ 12,000 and admitting partner is unable to bring his share of goodwill in cash.
(3) Claim on account of Workmen’s Compensation is ₹ 3,000.
(4) Creditors are to be paid ₹ 2,000 more
(5) 2% Provision for Discount on Debtors is required.
(6) The share of A, in the new firm will be 11/2 times of B.
Prepare Revaluation A/c, Capital Accounts and Balance Sheet.
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