0

Bikash, Somen and Raj are partners sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2023, their Balance Sheet was as follows:

Liabilities Assets
Creditors

Employee’s Provident Fund

Profit & Loss A/c

Capital A/cs:

Bikash

Somen

Raj

38,400

19,200

8,400

21,600

26,400

31,200

Cash

Bills Receivable

Furniture

Stock

Debtors

Investments

Machinery

Goodwill

10,800

14,400

16,800

26,400

25,200

19,200

20,400

12,000

1,45,200 1,45,200

They admit Sanjoy into partnership on 1st April, 2023 on the following terms:

(i) Furniture, Investments and Machinery to be reduced by 15%.

(ii) Stock is revalued at ₹ 28,800.

(iii) Outstanding Rent amounted to ₹ 1,080.

(iv) Prepaid Salaries ₹ 480.

(v) Goodwill is valued at ₹ 14,400 and Sanjoy brings his share in cash.

(vi) Sanjoy to bring ₹ 19,200 towards capital for 1/6th share and partners to readjust their Capital Accounts on the basis of their profit sharing ratio taking SAnjoy’s Capital as base.

(vii) Adjustment of Capital to be made through amount brought or paid.

Prepare Revaluation Account, Partner’s Capital Accounts, Cash Account and Balance Sheet of the new firm.

Anurag Pathak Changed status to publish July 17, 2023
Add a Comment