Jaspal and Rosy are partners in a firm sharing profits and losses in the ratio of 2 : 1. Following is their Balance sheet as at 1st April, 2023:
Jaspal and Rosy are partners in a firm sharing profits and losses in the ratio of 2 : 1. Following is their Balance sheet as at 1st April, 2023:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs:
Jespal Rosy Sundry Creditors Bills Payable |
10,00,000
4,00,000 1,20,000 80,000 |
Goodwill
Furniture Machinery Building Debtors Cash at Bank |
60,000
40,000 4,20,000 4,80,000 3,60,000 2,40,000 |
| 16,00,000 | 16,00,000 |
On 1st April, 2023, they admitted Noor as a new partner on the following terms:
i) New Profit sharing ratio is agreed at 2 : 2 : 1.
ii) Noor will bring in ₹ 10,00,000 as his share of capital and the necessary amount of premium for goodwill in cash.
iii) Firm’s Goodwill on Noor’s admission be valued at ₹ 6,00,000.
Pass the necessary Journal entries, prepare the Partner’s Capital Accounts and Balance sheet of the reconstituted firm.
Anurag Pathak Changed status to publish July 3, 2023
