Question

Arul and Asha are partners in a partnership business sharing profit and loss in the ratio of 1:1. The position of their business as on 31-12-99 was as under:
Liabilities
Rs
Assets
Rs
Arul’s Capital
60,000
Land & Buildings
60,000
Asha’s Capital
40,000
Furniture
10,000
General reserve
10,000
Stock
15,000
Sundry creditors
30,000
Debtors: 10,000
Less:
Bad debt 500


9,500
Bank a/c
5,000
Cash in hand
50,500

1,45,000

1,45,000
On 1-4-2000 Arjun was admitted as a partner with 1/5th share in future profits.
Following are the terms for his admission:
a) Land and Buildings be valued at Rs 80,000
b) Value of the furniture and stock be reduced by 10%
c) Goodwill Rs 10,000 brought in cash by Arjun
d) Arjun to bring Rs 20,000 as his capital
e) Provision for bad debts be increased to Rs 1000. Prepare necessary ledger accounts and balance sheet of the newly constituted firm.

Answer 1

Answer:

Your answer is here! All like it .

Answer 2

Concept Introduction:-

Accounting is the practise of logging, categorising, and summarising financial transactions for a company.

Explanation:-

A question has been provided to us

We need to find the solution to the question

Necessary ledger accounts and balance sheet of the newly constituted firm is attached with the answer.

Final Answer:-

The correct answer is ledger accounts and balance sheet of the newly constituted firm is attached with the answer.

#SPJ3