Fateh, Vipin and Ishant are partners sharing profits and losses in the ratio of 3 : 2 : 1. Manoj is admitted
Fateh, Vipin and Ishant are partners sharing profits and losses in the ratio of 3 : 2 : 1. Manoj is admitted as a new partner on 1st April, 2023 for 1/6th share and is to bring ₹ 1,25,000 as Capital. Following is Balance Sheet of the firm as at 31st March, 2023:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs:
Fateh Vipin Ishant Creditors Bills Payable |
1,50,000 1,50,000 1,00,000 75,000 25,000 |
Building
Plant and Machinery Furniture Stock Debtors Bills Receivable Bank |
1,25,000 1,00,000 75,000 50,000 75,000 50,000 25,000 |
| 5,00,000 | 5,00,000 |
Following adjustments are required on Manaoj’s admission:
(i) Out of the Creditors, a sum of ₹ 25,000 is due to Manoj which will be transferred to his capital.
(ii) Advertisement Expenses of ₹ 3,000 is to be carried forward to next accounting period.
(iii) Expenses debited in the Profit & Loss Account includes a sum of ₹ 5,000 paid for Vipin’s personal expenses.
(iv) A Bill of Exchange of ₹ 10,000, which was previously discounted with the bank, was dishonoured on 31st March, 2023 but entry was not passed yet.
(v) Provision for Doubtful Debts @ 5% is to be created against Debtors.
(vi) Expenses on revaluation amounting to ₹ 5,250 is paid by Fateh.
Prepare necessary Ledger Accounts and Balance Sheet after Manoj’s admission.
Anurag Pathak Changed status to publish March 30, 2024
