Question

A and B are partners sharing profits in the ratio 3:1. they admitted C as a partner by giving him 1/4th share of profits which he acquired from A and B in the ratio of 2:1. C brings in 100000 rupees as capital and 36000 rupees as goodwill in cash. At the time of admission of C , general reserve appeared in their balance sheet at 50,000. following revaluation are also made: 1) value of plant is to be rduced by 10000rupees 2) bad debts provision is to be reeduced from 4000rupees to 3000rupees. 3) 2000rupees out of total creditors of 20000rupees are not to be paid. 4) there is an outstanding bil for repairs of 1200rupees. pass journal entries and prepare a revaluation account. also calculate the new profit sharing ratio.

Answer 1

Answer:

Further you can solve it.

Answer 2

ANSWER :-------

Loss on Revaluation = ₹8,200, New Ratio = 7:2:3. Premium for goodwill will be distributed in sacrifice ratio, i.e. 2:1.]