1.

Mohan and Sohan are in partnership sharing profits in the proportion of 3/5th and 2/5th respectively. Their Balance Sheet as at 31st March, 2018 was: They decide to admit Rohan to a 1/3rd share upon the terms that he is to pay into the business ₹ 1,000 as Goodwill and sufficient Capital to give him a 1/3rd share of the total capital of the new firm. It was agreed that the Provision for Doubtful Debts be reduced to ₹ 100 and the Stock be revalued at ₹ 2,000 and that the Plant be reduced to ₹ 500. You are required to record the above in the Ledger of the firm and show Balance Sheet of the new partnership.

Answer»

tion:Working Notes:Working Notes 1:Working Notes 2:DISTRIBUTION of PREMIUM for GoodwillMohan will get Sohan will get Working Notes 3:Distribution of Revaluation ProfitMohan's Share Sohan's Share Working Notes 4:CALCULATION Robins CapitalCombined Capital of Mohan and Sohan after all the adjustments Total Capital of the firm on the BASIS of Combined Capital of Mohan and Sohan Rohan's Capital



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