Question

A and B are partners in a firm. They share profit and losses in the
જા ક્રોસ કુaઃ
are profit and losses in the ratio of 2:1. They admit C
an amount that his capital will be 1/3 of the total capital of the new timm.
bring in cash 30,000 for goodwill and will bring such
C will be given 1/3 share in future profits. At the time of admission
profits. At the time of admission of C the Balance Sheet of A
and B was as under:
Liabilities
Assets
Capital:
Machinery
1,20,000
1,40,000 Furniture
10,000
1,20,000 Stock
80,000
Sundry Creditors
50,000 Debtors
30,000
Cash
70,000
3,10,000
3,10,000
On independent valuation, it was found that the stock is overvalued by 5,000. Write off
depreciation of Furniture and Machinery at 10% and 5% respectively. Make provision of 3,000
on Sundry Debtors for Doubtful Debts. Prepare Balance Sheet of the firm after the admission of
C and give your full workings.​

Answer 1

Value of goodwill in the books after the admission of C= Rs 70000. Because the goodwill has been revalued before the admission of C.