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.
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