Question

are of profits on 1st April 2012
bylband Sanjivare in partnership sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on
31st March, 2020 is as under:
They admit Pramod as a new part
tio of 4:33. The Balance Sheet
che provision for doubtful debts
Sined at 2.000 which is to be pe
20% of the total capital of the new
3.109
Assets
1.76.000
2.54,000
20.000
10,000
10.000
3,00,000
10.000
60,000
50,000
w Compensation Reserve
sent Focation Reserve
by Provident Fund
7.70,000
following terms:
Goodwill
Land and Building
Investments Market Value < 45.000)
Debtors
1,00,000
Less Provision for Doubtful Debts 10,000 90,000
Stock
3,00,000
Bank Balance
2.50,000
Advertisement Suspense Nc
10,000
7.70,000
on 1st April, 2020, they agree to take Sagar as a partner to increase the capital base of the firm, under the
Raib will sacrifice 1/3rd of his share while Sanjiv sacrifices 1/10 from his share in favour of Sagar.
Sagar loan will be converted into his capital.
aSagar brings in 60% of his share of goodwill in cash.
w Goodwill is to be valued at 2 years purchase of super profit of last three completed years. Profits for
the last three years ended 31st March, are as follows:
2018-24,80,000; 2019-29,30,000; and 2020 - 13,80,000
Normat profit is 6,30,000 with same amount of capital invested in similar industry
Land and Building was undervalued by ? 50,000, Stock was overvalued by * 70,000 and Provision
for Doubtful Debts is to be made equal to 5% of the debtors.
vo Claim on account of Workmen Compensation is € 10,000. An unrecorded accrued income of 10,000
be provided for. A debtor whose dues of 50,000 were written off as bad debts paid 40,000 in full
settlement
vi) Workmen Compensation Reserve and Investment Fluctuation Reserve are to appear in the books
of new firm after adjusting Workmen Compensation Claim and difference between book value and
market value of investment. Such adjustment should be made by opening Partners Current Account
vil) Capital Accounts of the partners to be readjusted on the basis of their profit-sharing ratio and any
excess or deficiency be adjusted in cash.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm.
value 90,000)
200,000
20.000
ubtful Debts
S.
mse Alc
15580
goodwill in cash
hree completed years. Profits for
similar industry
Sean Code for Master Question​

Answer 1

didn't understand what I asked for....

Explanation:

evaluate the question

Answer 2

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