A and B are partners sharing profits in the ratio of 3:2. They admit C as a new partner from 1st April, 2019, They have decided to share future profits in the ratio of 4:3:3. The Balance Sheet as at 31st March, 2019 as given below: Terms of C's admission are as follows: (i) C contributers proportionate capital and 60% of his share of goodwill in cash. (ii) Goodwill is to be valued at 2 year's purchase of super profit of last three completed years. Profits for the years ended 31st March, were: 2017-Rs4,80,000, 2018-Rs9,30,000, 2019 -₹13,80,000. The normal profit isRs 5,30,000 with same amount of capital invested in similar industry. (iii) Land and Building was found undervalued byRs 1,00,000. (iv) Stock was found overvalued byRs 31,000. (v) Provision for Doubtful Debts is to be made equal to 5% of the debtors. (vi) Claim on account of Workmen Compensation isRs 11,000. Prepare Revaluation Account, Partners' Capital Accounts and Balance sheet.

A and B are partners sharing profits in the ratio of 3:2. They admit C

1.	A and B are partners sharing profits in the ratio of 3:2. They admit C as a new partner from 1st April, 2019, They have decided to share future profits in the ratio of 4:3:3. The Balance Sheet as at 31st March, 2019 as given below: Terms of C's admission are as follows: (i) C contributers proportionate capital and 60% of his share of goodwill in cash. (ii) Goodwill is to be valued at 2 year's purchase of super profit of last three completed years. Profits for the years ended 31st March, were: 2017-Rs4,80,000, 2018-Rs9,30,000, 2019 -₹13,80,000. The normal profit isRs 5,30,000 with same amount of capital invested in similar industry. (iii) Land and Building was found undervalued byRs 1,00,000. (iv) Stock was found overvalued byRs 31,000. (v) Provision for Doubtful Debts is to be made equal to 5% of the debtors. (vi) Claim on account of Workmen Compensation isRs 11,000. Prepare Revaluation Account, Partners' Capital Accounts and Balance sheet.
Answer» <html><body><p><br/></p>Answer :Gain (<a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a>) on Revaluation-Rs74,000' <a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a>'s Current A/c:<a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a> 96,000; Partners' <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> A/cs: <br/>A-Rs3,62,400; B-₹3,51,600; C-Rs3,06,000; Balance Sheet Total -Rs13,65,000.</body></html>

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