A B and C are partners sharing profits and losses in the ratio of 3 2 1 respectively Their Balance ......

.A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as at 31st March, 2019 is as follows:

D is admitted as a partner on 1st April, 2019 for equal share. His capital is to be 50,000. Following adjustments are agreed on D's admission:

1. Out of the Creditors, a sum of 10,000 is due to D, it will be adjusted against his capital.
2. Advertisement Expenses of 1,200 are to be carried forward as Prepaid Expenses.
3. Expenses debited in the Profit and Loss Account includes a sum of 2,000 paid for B's personal expenses.
4. A Bill of Exchange of 4,000, which was previously discounted with the bank, was dishonoured on 31st March, 2019 but entry was not passed for dishonour.
5. A Provision for Doubtful Debts @ 5% is to be created against Debtors.
6. Expenses on Revaluation amounted to 2,100 is paid by A.

Prepare necessary Ledger Accounts and Balance Sheet after D's admission

By: NIHARIKA WALIA