The Balance sheet of Himanshu, Pranav and Tushar who were sharing profits in proportion to their capital stood as follows:
Balance Sheet
as on 31 March 2022 |
| Liabilities |
Rs |
Assets |
Rs |
| Sundry Creditors |
25,000 |
Land and Building |
35,000 |
| Investment Fluctuation Fund |
5,000 |
Machinery |
45,500 |
| Bills Payable |
10,000 |
Stock |
13,000 |
|
Capital:
Himanshu = 35,000
Pranav = 21,000
Tushar = 14,000
|
70,000 |
Debtors |
6,000 |
| |
|
Investment |
5,000 |
| |
|
Bank |
4,000 |
| |
|
Profit and loss A/c |
1,500 |
| |
1,10,000 |
|
1,10,000 |
Addition Information:
(a) On 1st April 2022, they admitted Rachit into partnership for 1/6th share in future profit.
(b) Rachit will bring ₹25,000 for capital and ₹15,000 for goodwill.
(c) A provision for doubtful debts of 7% was to be made.
(d) Land and building is to be appreciated to 120%.
(e) Machinery is decreased by ₹1,500.
On the basis of above case give answer to question: |
