Following was the Balance Sheet of X and Y who were sharing profit 2/3rd and 1/3rd as at 31st March, 2023:
Following was the Balance Sheet of X and Y who were sharing profit 2/3rd and 1/3rd as at 31st March, 2023:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs:
X Y Sundry Creditors |
1,50,000 1,50,000 3,29,500 |
Building
Plant and Machinery Stock Sundry Debtors Cash in Hand |
2,50,000 1,75,000 1,00,000 48,500 6,000 |
| 5,79,500 | 5,79,500 |
On 1st April 2023, they admit Z into the partnership on the following terms:
(i) Z was to bring ₹ 75,000 as his capital and ₹ 30,000 as Goodwill for 1/4th share in the firm.
(ii) Values of the Stock and Plant and Machinery were to be reduced by 5%.
(iii) Provision for Doubtful Debts of ₹ 3,750 was to be created on Sundry Debtors.
(iv) the Building was to be appreciated by 10%.
Pass necessary Journal entries to give effect to the arrangements, prepare Revaluation Account, partner’s Capital Accounts and Balance Sheet of the new firm.
Anurag Pathak Changed status to publish July 11, 2023
