Q73.Rajesh and Ravi are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet at 31st March, 2019 stood as:
BALANCE SHEET as at 31st March, 2019
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Liabilities
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Assets
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Creditors Outstanding Rent Capital A/cs:
Rajesh 29,000
Ravi 15,000
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38,500
4,000
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Cash Stock
Prepaid Insurance Debtors
Less : Provision for Doubtful Debts Machinery
Building Furniture
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9,400
400
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2,000
15,000
1,500
9,000
19,000
35,000
5,000
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86,500
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86,500
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Raman is admitted as a new partner introducing a capital of 16,000. The new profit-sharing ratio is decided as 5 : 3 : 2. Raman is unable to bring in any cash for goodwill. So, it is decided to value the goodwill on the basis of Raman's share in the profits and the capital contributed by him. Following revaluations are made:
- Stock to decrease by 5%;
- Provision for Doubtful Debts is to be 500; (c) Furniture to decrease by 10%;
(d) Building is valued at 40,000.
Show necessary Ledger Accounts and Balance Sheet of new firm.