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A and B are partners in a firm sharing profits and losses in the ratio 3 : 1. They admit C for 1/4th share on 31st March, 2014 when their Balance Sheet was as follows: The following adjustments were agreed upon: (a) C brings ₹ 16,000 as goodwill and proportionate capital. (b) Bad Debts amounted to ₹ 3,000. (c) Market value of Investments is ₹ 4,500. (d) Liability on account of workmen compensation reserve amounted to ₹ 2,000. Prepare Revaluation Account and Partners Capital Accounts. |
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