Question

2.
3.
Kaveri shall pay 4,000 as her share of Goodwill, the
She shall bring in 12,000 as capital for 1/4 the share in the future profits.
The firm's assets were to be revalued as under:
Building 24,000, Machinery and Furniture to be reduced by 10%, a Provision of 5% on
Debtors is to be made for doubtful debts; Stock is to be taken at a value of 20,000.
The excess of capital of Narmada and Godavari over their due proportion of sharing profits of
the new firm is to be transferred to their respective loan account,
4.​

Answer 1

Explanation:

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