Question

ram and mohan were partners in a firm sharing profits in the ratio 3:2. they admitted sohan as a new partners for 1/3rd share in the profits. sohan is to bring 30,000 for goodwill and such an amount as his capital, so that his capital will be equal to 1/3rd of the total capital of the new firm. On 31st March 2017, the Balance Sheet was:
Liabilities
Creditors 30,000
B/P 10,000
WCR 10,000
General Reserve 30,000
Capital a/cs:
Ram 1,35,000
Mohan 1,25,000
Assests
Cah 1,00,000
Debtors 30,000
Stock 50,000
10% Government Bonds 20,000
Furniture 10,000
Machinery 1,20,000
Goodwill 10,000
It was decided that
a) Stock is found overvalued by 5,000
b)Depreciate furniture by 10% and machinery 5%
c)Make provision of 3,000 on debtors for doubtful debts.
d)A debtor whose dues of 5,000 were written off as bad debts last year, paid 4,000 in full.
e)Revaluation Expenses amounting to 4,000 are paid by the firm...
Prepare Revaluation A/C,Partners Capital A/Cs and Balance Sheet of the firm

Answer 1

Answer:

Explanation:

Revaluation account......

Loss is 15000