Abram and Alia are partners in a firm sharing profits in the ratio of 60 : 40. Their Balance Sheet as at 31st March, 2023 was as follows:
Abram and Alia are partners in a firm sharing profits in the ratio of 60 : 40. Their Balance Sheet as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Creditors
General Reserve Capital A/cs: Abram Alia |
3,20,000 1,80,000 4,00,000 3,50,000 |
Cash
Debtors Stock Patents Building |
4,80,000
|
2,40,000
4,32,000 3,00,000 74,000 2,04,000 |
| 12,50,000 | 12,50,000 |
Juhi is admitted into the partnership on 1st April, 2023 for 1/4th share in the profits. Juhi is to bring in ₹ 3,00,000 as her Capital and her share of Goodwill in cash subject to the following terms:
(i) Goodwill of the firm to be valued at ₹ 4,00,000.
(ii) Stock to be reduced by 10% and Provision for Doubtful Debts be reduced by ₹ 24,000.
(iii) Patents are valueless.
(iv) There was a claim against the firm of ₹ 20,000 for damages. The claim has now been accepted.
Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm.
Anurag Pathak Changed status to publish July 12, 2023
