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A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following is their Balance Sheet as at 31st March, 2018: C is admitted as a partner on 1st April, 2018 on the following terms: (a) C is to pay ₹ 20,000 as capital for 1/4th share. He also pays ₹ 5,000 as premium for goodwill. (b) Debtors amounted to ₹ 3,000 is to be written off as bad and a Provision of 10% is created against Doubtful Debts on the remaining amount. (c) No entry has been passed in respect of a debt of ₹ 300 recovered by A from a customer, which was previously written off as bad in previous year. The amount is to be paid by A. (d) Investments are taken over by B at their market value of ₹ 4,900 against cash payment. You are required to prepare Revaluation Account, Partner’s Capital Accounts and new Balance Sheet. |
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