Mr. Sahil and Mrs. Vanita were in partnership sharing profits and losses in the proportion of 3:1 respectively. Their Balance Sheet as on 31st March, 2019 of their business was as follows.
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Mr. Sahil and Mrs. Vanita were in partnership sharing profits and losses in the proportion of 3:1 respectively. Their Balance Sheet as on 31st March, 2019 of their business was as follows.
Liabilities:
Capitals:
Sahil 90,000
Vanita 75,000
Sundry Creditors 31,500
General Reserve 6,000
Assets:
Building 90000
Stock 60000
Debtors 46500
Cash 6000
Total 202500
Dinesh is admitted as a partner in the firm on the following terms :
1 He shall have 1/4 the share in profits of the firm.
2. Dinesh shall bring in cash ` 60,000 as his capital and ` 30,000 as his share of goodwill.
3 Building overvalued by `12,000 and the stock is undervalued by 20% in the books, these assets
are to be adjusted at their proper values.
4. Provided Reserve for Doubtful Debts ` 1,200 on Debtors.
You are required to prepare Revaluation A/c. Capital accounts of partners and Balance Sheet of the firm after admission of Dinesh.
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Some profit & loss problems for practice . Link is given below:-
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