Question

They take Kaveri into partnership on 1.4.2019 the terms being:
1800
1. Kaveri shall pay 4,000 as her share of Goodwill, the amount to be retained in business.
2
She shall bring in 12,000 as capital for 1/4 the share in the future profits.
3. The firm's assets were to be revalued as under:
325200
24,200
Building 24,000, Machinery and Furniture to be reduced by 10%, a Provision of 5% on
Debtors is to be made for doubtful debts; Stock is to be taken at a value of 20,000.
4. The excess of capital of Narmada and Godavari over their due proportion of sharing profits of
the new firm is to be transferred to their respective loan account.​

Answer 1

Answer:

As per the information provided, Kaveri is taken as a partner in a firm on 1.4.2019 with certain terms specified. These terms include the payment of Goodwill, bringing in capital, revaluation of assets and transfer of excess capital to loan accounts. Based on this information, it cannot be determined whether the employees of this firm can claim their salaries from the Government of India. Additionally, the company is not referred to as a 'Government company' in the information provided.