Vinay and Pankaj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The following is the extract of their Balance Sheet as at 31 st March, 2024:
Balance Sheet of Vinay and Pankaj as at 31 st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Investment Fluctuation Fund | 6,00,000 | Investments | 15,00,000 |
| Workmen Compensation Fund | 8,00,000 |
On 1st April, 2024, Parth was admitted as a new partner for 1/5 th share in the profits of the firm on the following terms :
- Market value of investments was ₹13,00,000.
- Claim on account of Workmen Compensation was estimated at ₹9,00,000.
Pass necessary journal entries for treatment of Investment Fluctuation Fund and Workmen Compensation Fund on the date of Parth’s admission.
Marks-3, CBSE: 2024-25/Zone-4/Set-1/Q-18
Answer :
