60 :- Given below is the Balance Sheet of A and B on 31st March, 2024, who are carrying on partnership business. A and B share profits and losses in the ratio of 2 : 1.
C is admitted as a partner on 1st April, 2023 on the following terms:
(a) C will bring Rs 1,00,000 as his capital and Rs 60,000 as his share of goodwill for 1/4th share in the profits.
(b) Plant 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) A provision for doubtful debts is to be created at 5% of sundry debtors
(e) Creditors were unrecorded to the extent of Rs 1,000.
Pass the necessary Journal entries, prepare the Revaluation Account and Partner’s Capital Accounts and Show the Balance Sheet after the admission of C.
Solution :–
