Question

the raito of 3:2. Their bal 28. 1
Long Type Questions
35
26. Anjan and Ajit are partners
on 31st December, 2016 was as follows:
Balance Sheet
Assets
Liabilities
12,000
Sundry creditors
Capital accounts:
Anjan
33,000
25,000
Land and buildings
Plant
Stock
Debtors
Cash at bank
Ajit
70,000
On 1st January, 2017, Asit was admitted into partnership on the following conditions :
(i) Asit will pay 15,000 as his capital for 20% share of the future profit of the firm.
(ii) Stock will be reduced by 10%, plant will be reduced by 5%.
(iii) The value of land and building will be appreciated by 20%.
(iv) 5% provision for doubtful debts will be created on sundry debtors.
(v) An item of 500 included in sundry creditors is not likely to be claimed and hence it should be
back.
Make Journal entries and give Ledger Accounts and Balance Sheet of the new firm.
na ac under on 1st January 2017 :​

Answer 1

Explanation:

The role of accounting has now shifted from that of a mere recording of business transactions to that of providing information to managers and other various interested parties in order to help them in making appropriate decisions.