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 Goodwill brought by Sanjay will be withdrawn by Anmol and Basu.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 July 11, 2023
