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Amit and Anil are partners sharing profits and losses in the ratio of 2 : 1. Their Balance Sheet as on 31st March, 2023 was as follows:

Liabilities ₹ Assets ₹
Sundry Creditors

General Reserve

Capital A/cs:

Amit

Anil

 

58,000

12,000

1,80,000

1,50,000

Cash in Hand

Cash at Bank

Sundry Debtors

Stock

Machinery

Building

5,000

45,000

60,000

40,000

1,00,000

1,50,000

4,00,000 4,00,000

 

Ankit is admitted as a partner on the date of the Balance Sheet on the following terms:

a) Ankit will bring in ₹ 1,00,000 as his capital and ₹ 60,000 as his share of goodwill for 1/4th share in profits.

b) Machinery is to be appreciated t0 ₹ 1,20,000 and the value of Building is to be appreciated by 10%.

c) Stock is found overvalued by ₹ 4,000.

d) General Reserve will continue to appear in the books of the reconstituted firm at its original value.

e) A provision for Doubtful Debts is to be created at 5% of debtors

f) Creditors were unrecorded to the extent of ₹ 1,000.

Prepare Revaluation Account and partner’s Capital Accounts.

Anurag Pathak Changed status to publish May 23, 2023
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