Question

(8)
P and Q were partners in a firm sharing profits in 3:2 ratio. R was admitted as a new partner for 1/4
share in the profits on April 1, 2015. The Balance Sheet or the firm on March 31,2015 was as follows:
Balance Sheet of P and
as at March 31, 2015
Liabilities
Creditors 20000
General Reserve 16000
Capitals
P : 96,000
Q : 68,000
Total 200000
Assets
Cash 20000
Debtors 18000
Stock 20000
Furniture 12000
Machinery 40000
Buildings 90000
Total 200000
The term of agreement on R's admission were as follows
R brought in cash 60,000 for his capital and 30,000 for his share of goodwill.
Building was valued at 1,00,000 and Machinery at 36,000.
c) The capital accounts of P and Q were to be adjusted in the new profit-sharing ratio.
Necessary cash was to be brought in or paid off to them as the case may be.
Prepare Revaluation Account Partner's Capital Account and the Balance Sheet of P. Q and R.​

Answer 1

Answer:

here is the answers with working note