On 31st March, 2023 the Balance Sheet of Ram and Shyam who share profits and losses in the ratio of 3 : 2 was as follows:
On 31st March 2023 the Balance Sheet of Ram and Shyam who share profits and losses in the ratio of 3 : 2 was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Creditors
General Reserve Employee’s Provident Fund Capitals: Ram Shyam |
70,000 25,000 55,000 1,50,000 1,00,000 |
Cash at Bank
Debtors Stock Machinery |
1,62,500
|
25,000 1,50,000 82,500 1,42,500 |
| 4,00,000 | 4,00,000 |
They decided to admit Mahesh on 1st April, 2023 for 1/5th share which Mahesh acquired wholly from Shyam on the following terms:
i) Mahesh shall bring ₹ 25,000 as his share of premium for goodwill.
ii) A debtor whose dues of ₹ 7,500 were written off as bad debt paid ₹ 5,000 in settlement.
iii) A claim of ₹ 12,500 on account of workmen’s compensation was to be provided for.
iv) Machinery was undervalued by ₹ 5,000. Stock was valued 10% more than its market value.
v) Mahesh was to bring in capital equal to 20% of the combined capitals of Ram and Shyam after all adjustments.
Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm.
[Ans: Loss on Revaluation – ₹ 10,000; Partner’s Capital Accounts: Ram – ₹ 1,59,000; Shyam – ₹ 1,31,000; Mahesh – ₹ 58,000; Balance Sheet Total – ₹ 4,85,500.]
Anurag Pathak Changed status to publish May 30, 2023
