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Given below is the Balance Sheet of A an...

Given below is the Balance Sheet of A and B, who are carrying partnership business on 31st March, 2019. A and B share profit and losses in the ratio of 2 : 1.

C is admitted as a partner on 1st April, 2019 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 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 Partners' Capital Accounts and show the Balance Sheet after the admission of C.

Text Solution

Verified by Experts

Gain on Revaluation -RS.27,000, Capital A/cs: A-RS.2,38,000, B-RS.1,79,000, C-RS.1,00,000, Balance Sheet Total-RS.5,88,000.
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TS GREWAL-Admission of a Partner-EXERCISE
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  2. Following was the Balance Sheet of A and B who were sharing profits in...

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  3. Given below is the Balance Sheet of A and B, who are carrying partners...

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  4. Balance Sheet of J and K who share profits in the ratio of 3 : 2 is as...

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  5. Balance Sheet of Madhu and Vidhi who are sharing in profits in the rat...

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  6. Shyamlal and Sanjay were in partnership business sharing profits and l...

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  7. A, B and C are partners sharing profits and losses in the ratio of 3 :...

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  8. On 31st March, 2017, the Balance Sheet of Abhir Divay, who were sharin...

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  9. X and Y share profits in the ratio of 5 : 3. Their Balance Sheet as at...

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  10. X and Y are partners in a firm sharing profit in the ratio of 3 : 2. T...

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  11. Rajesh and Ravi are partners sharing profits in the ratio of 3 : 2. Th...

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  12. A and B are partners in a firm shaing profits in the ratio of 3 : 2. T...

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  13. Divay, Yasmin and Fatima are partners in a firm, sharing profits and l...

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  14. A and B are partners in a firm. The net profit of the firm is divided ...

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  15. Following is the Balance Sheet of the firm, Ashirvad, owned by A, B an...

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  16. A and B are partners in a firm sharing profits and losses in the ratio...

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  17. X and Y are partners sharing profits and losses in the ratio of 3/4 an...

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  18. Deepika and Rajshree are partners in a firm sharing profits and losses...

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  19. Atul and Amit are partners sharing profits in the ratio of 3 : 2. Thei...

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  20. Yogesh and Naresh are partbners sharing profits in the ratio of 3 : 2....

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