55 :- Amit and Anil are partners sharing profits and losses in the ratio of 2 : 1. Their Balance Sheet as on 31st March, 2024 was as follows:
Ankit is admitted as a partner on the date of the balance sheet on the balance sheet on the following terms
(a) Ankit will being in Rs 1,00,000 as his capital and Rs 60,000 as his share of goodwill for 1/4th share in profits.
(b) Machinery is to be appreciated to Rs 1,20,000 and the value of building is to be appreciated by 10%.
(c) Stock is found overvalued by Rs 4,000.
(d) General Reserve will continue to appear in the books of the reconstituted firm at its original value.
(e) A Provision for Doubtful Debts is to be created at 5% of debtors.
(f) creditors were unrecorded to the extent of Rs 1,000
Prepare revaluation account and partner’s capital account.
Solution :-
