Anmol and Basu were partners sharing profits equally. Their Balance sheet as at 31st March, 2023 was as follows:
Anmol and Basu were partners sharing profits equally. Their Balance sheet as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Sundry Creditors
Outstanding Expenses Capital A/cs: Anmol Basu |
6,50,000 30,000 6,00,000 4,00,000 |
Cash at Bank
Sundry Debtors Stock Furniture Machinery Building |
2,00,000
|
2,70,000 1,95,000 2,00,000 1,00,000 1,80,000 7,35,000 |
| 16,80,000 | 16,80,000 |
On 1st April, 2023, they admit Sanjay as a partner on the following terms:
(i) Sanjay will get 1/5th share in profits and he will bring ₹ 2,00,000 as his capital and ₹ 50,000 as his share of Goodwill. Goodwill brought by Sanjay will be withdrawn by Anmol and Basu.
(ii) Provision for Doubtful Debts to be brought up to 5% on Sundry Debtors.
(iii) Machinery be reduced (depreciated) by ₹ 20,000 and Furniture by 12.5%.
(iv) Stock be valued at ₹ 2,30,000.
(v) Building to be appreciated by 20%.
(vi) Investments of ₹ 20,000 which did not appear in books are to be recorded.
Pass necessary Journal entries and prepare Balance Sheet of the new firm.
Anurag Pathak Changed status to publish
