Jannat and Mannat are partners in a firm. They share profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as under:
Jannat and Mannat are partners in a firm. They share profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as under:
| Liabilities | ₹ | Assets | ₹ | |
| Creditors
Bills Payable Outstanding Rent Contingency Reserve Capital A/cs: Jannat Mannat |
1,87,500 1,00,000 25,000 15,000 3,75,000 1,87,500 |
Cash at Bank
Debtors Stock Prepaid Expenses Plant and Machinery Advertisement Expenditure |
2,50,000
|
1,50,000 2,25,000 62,500 12,500 4,25,000 15,000 |
| 8,90,000 | 8,90,000 |
They admitted Umesh as a partner on 1st April, 2023 on the following terms:
(i) Umesh will bring ₹ 2,50,000 as Capital and necessary amount for Goodwill.
(ii) The new profit sharing ratio among Jannat, Mannat and Umesh will be 5 : 3 : 2.
(iii) The amount of goodwill is to be based on Umesh’s share in profits and capital contributed by him.
(iv) Stock to be reduced by 10%.
(v) Provision for Doubtful Debts is to be ₹ 6,250.
(vi) Plant and Machinery is to be reduced (depreciated) by 5%.
Prepare Revaluation Account, Bank Account, Partner’s Capital Accounts and Balance Sheet of the new firm.
Anurag Pathak Changed status to publish July 11, 2023
