Liabilities
Capital Alcs :
Ajinka
Bumrah
Amount Assets
Amount
Plant & Machinery
33,000
35,000
Furniture & Fixture
15,000
30,000 65,000 Investments
20,000
Stock
23,000
10,000 Debtors
19,000
9,000 Less : Provision 2,000 17,000
36,000 Cash
12,000
1,20,000
1,20,000
General Reserve
Bank Loan
Creditors
On 1st April, 2019 they admitted Cheteswar for 25% share in profit on the
following terms :
(1) Cheteswar brings in Capital proportionate to his share after all adjustment
and Rs. 4,000 for goodwill out of his share of Rs. 7,000.
(ii) Depreciate Furniture by 10%.
(iii) Half of investments was to be taken over by Ajinka and Bumrah in their
rofit sharing ratio and remaining valued of Rs. 13,000.
(iv) New ratio will be 3: 3:2.
Prepare Revaluation Account and Partner's Capital Account.
Share
Answer:
Ajinka Bumrah Amount Assets Amount Plant & Machinery ... 30,000 65,000 Investments 20,000. Stock 23,000 10,000 Debtors 19,000 9,000 Less : Provision 2,000