karim, rahman and navel are partners sharing profit and losses in the ratio of 5:3:2 their balance sheet as at 31st march, 2021 stood as following
Answers
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Karim and Rehman are partners in a firm sharing profits in the ratio of 5:3. They admitted navel, an old employe as a partner into a firm for 2/3 share in the profits. Navel will bring 500000 for his capital and the capital of Karim and Rehman will be adjusted in the profit sharing ratio. For which current account should be opened.
The balance sheet of the firm as at 31st march 2021 before admission of navel (Refer attachment )
Adjustments :-
- Navel will bring ₹175000 for his share of goodwill.
- Building will be revalued at ₹ 390000 and ₹70000 depreciation will be charged on machinery.
- A provision of 2% was to be made on debtors for bad debts.
Prepare revaluation a/c, partners capital a/c, partners current a/c and balance sheet.
Answer
Refer attachment for revaluation a/c , partners capital a/c, partners current a/c and balance sheet.
Explanation:
plz use full terms in your exam don't use shortcut as I use here
