Gautam and Yashica were partners in a firm sharing profits in the ratio of 7 : 3. Their Balance Sheet as at 31st March, 2023 was as follows:
Gautam and Yashica were partners in a firm sharing profits in the ratio of 7 : 3. Their Balance Sheet as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Creditors
Bills Payable Workmen Compensation Reserve Parul’s Loan Capital A/cs: Gautam Yashica |
10,000 15,000 10,000 10,000 80,000 |
Cash
Debtors Bills Receivable Stock Building Land Goodwill |
20,000
|
15,500 19,500 50,000 30,000 1,00,000 1,00,000 10,000 |
| 3,25,000 | 3,25,000 |
On 1st April, 2023, they admitted Parul as a partner on the following terms:
(i) Parul will get 1/5th share in the profits of the firm.
(ii) Parul’s Loan will be transferred to Capital
(iii) Goodwill of the firm was valued at ₹ 2,00,000 and Parul brought her share of goodwill premium in cash.
(iv) Provision for Doubtful Debts was to be made equal to 4% of Debtors.
(v) Stock was to be reduced by 5%.
(vi) Land was to be appreciated by 10%.
Prepare Revaluation Account, Capital Accounts of Gautam, Yashica and Parul and Balance Sheet of the new firm as at 1st April, 2023.
Anurag Pathak Changed status to publish July 13, 2023
