Vinay and Madan were partners sharing profits in the ratio of 2:1. On 1st April 2019, they admitted
Sunil, a retired army officer who had lost his legs while servicing in army, as a new partner for 1/4
share in profits. Sunil brought ₹ 60,000 for Goodwill and ₹ 50,000 as Capital. At the time of admission
of Sunil, the Balance Sheet Vinay and Madan was as under: -
Balance Sheet as at 31-03-2019
Liabilities ₹ Assets ₹
Capital Accounts
Vinay 70,000
Madan 60,000
General Reserve
Bank Loan
Creditors
1,30,000
18,000
18,000
72,000
Plant
Furniture
Investment
Stock
Debtors 38,000
Less BDR 4,000
Cash
66,000
30,000
40,000
46,000
34,000
22,000
Total 2,38,000 Total 2,38,000
It was decided to
(i) Reduce the value of Stock by ₹ 10,000.
(ii) Plant to be valued at ₹ 80,000.
(iii) An amount of ₹ 3,000 included in Creditors was not payable.
(iv) Half of the Investment were taken over by Vinay and remaining were valued at ₹ 25,000.
Prepare Journal and Revaluation Account.
Answers
Answered by
2
JOURNAL ENTRIES AT THE TIME OF ADMISSION OF SUNIL.
Explanation:
REFER TO THE ATTACHMENT FOR JOURNAL ENTRIES.
Attachments:
Answered by
0
Answer:
good
Explanation:
good
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