Question

72. X and Y are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet as at 31st March,
Chapter 5. Admission of a Partner 5.99
2019 was as follows:
₹
Assets
00; B-575
*al* 2,3956
a Bank Account
₹
Liabilities
Outstanding Rent
Creditors
Workmen Compensation Reserve
he ratio of 3
Capital A/cs: X
m
1,400
000
000
6,000
3,000
5,000
13,000 Cash
20,000 Sundry Debtors
10,000
5,600
Less: Provision for Doubtful Debts
80,000
50,000
4,000
Stock
76,000
Y
60,000 1,10,000 Profit and Loss A/C
20,000
4,000
Machinery
38,600
1,48,600
1,48,600
On 1st April, 2019, they admitted Z as a partner for 1/6th share on the following terms:
() Z brings in 40,000 as his share of Capital but he is unable to bring any amount for Goodwill.
(ii) Claim on account of Workmen Compensation is 73,000.-
(iii) To write off Bad Debts amounted to * 6,000.
(iv) Creditors are to be paid 2,000 more.
(v) There being a claim against the firm for damages, liabilities to the extent of 2,000 should be created.
(vi) Outstanding rent be brought down to 11,200.
(vii) Goodwill is valued at 1/2 years' purchase of the average profit of last 3 years, less 12,000. Profits for
the last 3 years amounted to 10,000; 320,000 and 30,000,
Pass Journal entries, prepare Partners' Capital Accounts and opening Balance Sheet.
[Ans.: Loss on Revaluation— 4,200; Partners' Capital Accounts:X-48,440;
Y_58,960, and 2–40,000; Z's Capital/Current A/c (For Goodwill) — 3.000.
Total of Balance Sheet-1,85,600.]
15,40,00
ettlement
irm.
nstituted from 23. Rajesh and Ravi are partners sharing profits in the ratio of 3:2. Their Balance Sheet at 31st March, 2019 stood as:​

Answer 1

Answered. check attachment