Gautam and Yashica are partners in a firm, sharing profits and losses in 3:1 respectively. The balance sheet of the firm as on 31st March 2018 was as follows:
Balance Sheet As at 31.3.2018
Liabilities Amt(₹) Assets Amt(₹)
Sundry creditors 50,000 Furniture 60,000
Bills payable 30,000 Stock 1,40,000
Capitals: Debtors 80,000
Gautam 4,00,000 Cash in hand 90,000
Yashica 1,00,000 5,00,000 Machinery 2,10,000
5,80,000 5,80,000
Asma is admitted as a partner for 3/8th share in the profits with a capital of ₹2,10,000 and ₹50,000 for her share of goodwill. It was decided that:
i. New profit sharing ratio will be 3:2:3
ii. Machinery will depreciated by 10% and Furniture by ₹5,000.
iii. Stock was re-valued at ₹ 2,10,000.
iv. Provision for doubtful debts is to be created at 10% of debtors.
v. The capitals of all the partners were to be in the new profit sharing ratio on basis of capital of new partner any adjustment to be done through current accounts.
Prepare Revaluation Account, Partners Capital Account and the Balance Sheet of the new firm.
Dear Student,
Note:- Total Capital of the firm =2,10,000 x 8/3= 5,60,000
Gautam’s capital in the firm =5,60,000 x3/8= 2,10,000
Yashica’S capital in the firm = 5,60,000x2/8= 1,40,000
Regards
Note:- Total Capital of the firm =2,10,000 x 8/3= 5,60,000
Gautam’s capital in the firm =5,60,000 x3/8= 2,10,000
Yashica’S capital in the firm = 5,60,000x2/8= 1,40,000
Regards