Please solve this quickly 4. Karim and Rehman are partners in a firm sharing profit in the ratio of respectively. They admitted Naval.an old employee as a partner for % share in th
profit . Naval Will bring for his capital and the capital pf and rehman Will be adjusted in the profit—sharing For this Current Account
will be opened . The balance sheet of the firm as at 31st March .2018befOre Naval's Admission was as follow:
BALANCE SHEET OF KARIM AND REHMAN
Liabilities
Crediators
Bills payable
General reserve
Workmen Compensation Resewe
Capital A/cs:
Karim
Rehman
120.000
1.60000
80.000
40.000
5.00.000
as at 31st March-2018
Assets
cash in hand
Sundry Debtor
Less Provision for doubtful debt
Furniture
Machinery
Building
Profit and loss A/c
205.000
315.000
The other terms of the agreement were as follcm-.
(a) Naval will bring Rs.I.75.OOO.for his share of goodwill.
(b) Building Will be at Rs,3.90.OOO and machinery be depreciated
(c) Outstandingrent amountedtoRs.4.OOO.
(d) All debtors are good.
(e) There is a claim against the firm for damage liability to the extent of Rs. 5000 is to be created.
200.000
2/00.000
3.10.000
1.10.000
40.000
Identify the value bein
prepare Revaluation Account .
highlighted in this case.
partners Capital Accounts. partners Current Accounts and the balance Sheet Of the new Firm
Regards