Question

A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a partner on 1st April,
2020 on which date the Balance Sheet of the firm was:
liabilities
capital
a-60,000
b-40,000
creditors-20,000
Assets
Building-50,000
Plant and Machinery-30,000
Stock-20,000
Debtors-10,000
Bank-10,000


You are required to prepare the Revaluation Account Partners' Capital Accounts and Balance Sheet of
the new firm after considering the following:
la) C brings 30,000 as capital for 1/4th share. He also brings 10,000 for his share of goodwill.
(b) Part of the Stock which had been included at cost of 2,000 had been badly damaged in storage
and could only expect to realise 400.
lo Bank charges of 200 for the year were not recorded.
d) Depreciation on Building of 3,000 for the year was not provided.
(e) A credit purchase of goods for 800 were not recorded in the books but had been included in Stock.
(t) An expense of 1.200 for insurance premium was debited in the Profit and Loss Account for the
year but 600 of this related to the period after 31st March, 2020.​

Answer 1

In which class you read