The following was the balance sheet of Arun, Bablu and Chetan sharing

1.	The following was the balance sheet of Arun, Bablu and Chetan sharing profits and losses in the ratio of 614:514:314 respectively. Capital and LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Creditors9,000Land and Building24,000Bills Payable3,000Furniture3,500Capital AccountsStock14,000Arun 19,000Debtors12,600Bablu 16,000Cash900Chetan 8,000––––––43,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯55,000––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯55,000–––––––––––––––– They agreed to take Deepak into partnership and give him a share of 18 on the following terms (a) that Deepak should bring in Rs.4,200 as goodwill and Rs. 7,000 as his capital; (b) that furniture be depreciated by 12% ; (c) that stock be depreciated by 10%; (d) that a reserve of 5% be created for doubtful debts; (e) that the value of land and buildings having apprec iated be brought upto Rs. 31,000 ; (f) that after making the adjustments, the Capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of Deepak's capital to his share in the business i.e., actual cash to be paid off to or brought in by the old partners as the case may be. Prepare cash account, profit and loss adjustment account. (revaluation account) and the opening balance sheet of the new firm.
Answer» The following was the balance sheet of Arun, Bablu and Chetan sharing profits and losses in the ratio of $\frac{6}{14} : \frac{5}{14} : \frac{3}{14}$ respectively. $\begin{matrix} Capital and Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Creditors & 9, 000 & Land and Building & 24, 000 Bills Payable & 3, 000 & Furniture & 3, 500 Capital Accounts & Stock & 14, 000 Arun 19, 000 & Debtors & 12, 600 Bablu 16, 000 & Cash & 900 Chetan 8, 000 - ---- - & 43, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 55, 000 - ------ - - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 55, 000 - ------ - - ------ - \end{matrix}$ They agreed to take Deepak into partnership and give him a share of $\frac{1}{8}$ on the following terms (a) that Deepak should bring in Rs.4,200 as goodwill and Rs. 7,000 as his capital; (b) that furniture be depreciated by 12% ; (c) that stock be depreciated by 10%; (d) that a reserve of 5% be created for doubtful debts; (e) that the value of land and buildings having apprec iated be brought upto Rs. 31,000 ; (f) that after making the adjustments, the Capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of Deepak's capital to his share in the business i.e., actual cash to be paid off to or brought in by the old partners as the case may be. Prepare cash account, profit and loss adjustment account. (revaluation account) and the opening balance sheet of the new firm.

The following was the balance sheet of Arun, Bablu and Chetan sharing profits and losses in the ratio of 614:514:314 respectively. Capital and LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Creditors9,000Land and Building24,000Bills Payable3,000Furniture3,500Capital AccountsStock14,000Arun 19,000Debtors12,600Bablu 16,000Cash900Chetan 8,000––––––43,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯55,000––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯55,000–––––––––––––––– They agreed to take Deepak into partnership and give him a share of 18 on the following terms (a) that Deepak should bring in Rs.4,200 as goodwill and Rs. 7,000 as his capital; (b) that furniture be depreciated by 12% ; (c) that stock be depreciated by 10%; (d) that a reserve of 5% be created for doubtful debts; (e) that the value of land and buildings having apprec iated be brought upto Rs. 31,000 ; (f) that after making the adjustments, the Capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of Deepak's capital to his share in the business i.e., actual cash to be paid off to or brought in by the old partners as the case may be. Prepare cash account, profit and loss adjustment account. (revaluation account) and the opening balance sheet of the new firm.

Answer»

The following was the balance sheet of Arun, Bablu and Chetan sharing profits and losses in the ratio of $\frac{6}{14} : \frac{5}{14} : \frac{3}{14}$ respectively.

$\begin{matrix} Capital and Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Creditors & 9, 000 & Land and Building & 24, 000 Bills Payable & 3, 000 & Furniture & 3, 500 Capital Accounts & Stock & 14, 000 Arun 19, 000 & Debtors & 12, 600 Bablu 16, 000 & Cash & 900 Chetan 8, 000 - ---- - & 43, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 55, 000 - ------ - - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 55, 000 - ------ - - ------ - \end{matrix}$

They agreed to take Deepak into partnership and give him a share of $\frac{1}{8}$ on the following terms

(a) that Deepak should bring in Rs.4,200 as goodwill and Rs. 7,000 as his capital;

(b) that furniture be depreciated by 12% ;

(d) that a reserve of 5% be created for doubtful debts;

(e) that the value of land and buildings having apprec iated be brought upto Rs. 31,000 ;

(f) that after making the adjustments, the Capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of Deepak's capital to his share in the business i.e., actual cash to be paid off to or brought in by the old partners as the case may be.

Prepare cash account, profit and loss adjustment account. (revaluation account) and the opening balance sheet of the new firm.

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