Uma and Umesh were partners in a firm sharing profits and losses in the ratio of 2:3. On 31st March, 2024, their Balance Sheet was as follows:
Balance Sheet of Uma and Umesh as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
|---|---|---|---|---|---|
| Capitals: | Land and Building | 10,00,000 | |||
| Uma | 5,00,000 | Furniture | 1,00,000 | ||
| Umesh | 7,50,000 | 12,50,000 | Debtors | 80,000 | |
| Creditors | 50,000 | Less: Provision for doubtful debts | 5,000 | 75,000 | |
| General Reserve | 75,000 | Stock | 40,000 | ||
| Workmen Compensation Fund | 25,000 | Bank | 1,95,000 | ||
| Outstanding Electricity Bill | 10,000 | ||||
| 14,10,000 | 14,10,000 | ||||
On the above date, Daya was admitted as a new partner on the following terms:
(i) The new profit sharing ratio of Uma, Umesh and Daya will be 2:3:5.
(ii) Daya will bring ₹10,00,000 as her capital and ₹2,00,000 as her share of goodwill premium.
(iii) The value of Land and Building will be increased by ₹2,00,000.
(iv) Furniture will be depreciated by 10%.
(v) ₹3,000 bad debts will be written off and a provision for bad and doubtful debts be created @ 5% of debtors.
(vi) Outstanding electricity bill will be paid off.
Pass necessary journal entries for the above transactions on Daya admission.
Marks-6, CBSE: 2024-25/Zone-7/Set-1/Q-24*
Answer :
