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Kalpana and Kanika were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2018, they admitted Karuna as a new partner for 1/5th share in the profits of the firm. The Balance Sheet of the Kalpana and Kanika as on 1st April, 2018 was as follows: It was agreed that; (a) the value of Land and Building will be appreciated by 20%. (b) the value of plant be increased by ₹ 60,000. (c) Karuna will bring ₹ 80,000 for her share of goodwill premium. (d) the liabilities of Workmen’s Compensation Fund were determined at ₹ 60,000. (e) Karuna will bring in cash as capital to the extent of 1/5th share of the total capital of the new firm. Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet of the new firm. |
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