nbsp Shyamlal and Sanjay were in partnership business sharing profits and losses in the ratio of 2 ......

Shyamlal and Sanjay were in partnership business sharing profits and losses in the ratio of 2 : 3 respectively. Their Balance Sheet as at 31st March, 2019 was:

On 1st April, 2019, they admitted Shanker into partnership for 1/3rd share in future profits on the following terms:

1. Shanker is to bring in 30,000 as his capital and 20,000 as goodwill which is to remain in the business.
2. Stock and Furniture are to be reduced in value by 10%. (c) Building is to be appreciated by 15,000.

1. Provision of 5% is to be made on Sundry Debtors for Doubtful Debts.
2. Unaccounted Accrued Income of 2,400 to be provided for. A debtor, whose dues of 4,800 were written off as bad debts, paid 50% in full settlement.
3. Outstanding Rent amounted to 4,800.

Show Profit and Loss Adjustment Account (Revaluation Account), Capital Accounts of Partners and opening Balance Sheet of the new firm.

By: NIHARIKA WALIA