Q77 Following is the Balance Sheet of the firm Ashirvad owned by A B and C who share profits and los......

Accountancy ( 12th) Admission of a Partner Add to Study Deck

Q77.Following is the Balance Sheet of the firm, Ashirvad, owned by A, B and C who share profits and losses of the business in the ratio of 3 : 2 : 1.

BALANCE SHEET as at 31st March, 2019

Liabilities			Assets
Capital A/cs: A	1,20,000		Furniture Business Premises Stock-in- Trade Debtors Cash at Bank Cash in Hand	95,000 2,05,000
B	1,20,000			40,000
C Sundry Creditors	1,20,000	3,60,000 20,000		28,000 15,000
C Sundry Creditors		3,60,000 20,000		28,000 15,000
Outstanding Salaries and wages		7,200		4,200
		3,87,200		3,87,200

On 1st April, 2019, they admit D as a partner on the following conditions:

D will bring in 1,20,000 as his capital and also 30,000 as goodwill premium for a quarter of the share in the future profits/losses of the firm.
Values of the fixed assets of the firm will be increased by 10% before the admission of D.
Mohan, an old customer whose account was written off as bad debts, has promised to pay 3,000 in full settlement of his dues.
Future profits and losses of the firm will be shared equally by all the partners.

Pass the necessary Journal entries and prepare Revaluation Account, Partners' Capital Accounts and opening Balance Sheet of the new firm

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