Following is the Balance Sheet of Suman and Palak, who had been sharing profits in proportion of 3/4th and 1/4th, as at 31st March, 2023:
Following is the Balance Sheet of Suman and Palak, who had been sharing profits in proportion of 3/4th and 1/4th, as at 31st March, 2023:
| Liabilities | ₹ | Assets | ₹ |
| Creditors
General Reserve Capital A/cs: Suman Palak |
3,75,000
60,000 3,00,000 1,60,000 |
Cash at Bank
Bills Receivable Debtors Stock Advertisement Expenditure (Deferred Revenue) Furniture Land and Building |
2,25,000
30,000 1,60,000 2,00,000 20,000 10,000 2,50,000 |
| 8,95,000 | 8,95,000 |
They admit Anjan into partnership on 1st April, 2023 on the following terms:
(i) Anjan pays ₹ 1,40,000 as his Capital for 1/5th share in future profits.
(ii) Goodwill Account be valued from the books of the firm at ₹ 2,00,000. Anjan is unable to bring in any cash for his share of Goodwill.
(iii) Stock and Furniture will be reduced by 10% and 5% Provision for Doubtful Debts will be created on Debtors.
(iv) Land and Building be appreciated by 20%.
(v) Capital Accounts of the partners will be readjusted on the basis of their profit sharing arrangement and any excess or deficiency transferred to their Current Accounts.
Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm.
Anurag Pathak Changed status to publish July 17, 2023
