Sunaina and Tamanna are partners in a firm sharing profits and losses in the ratio of 3:2. Their Balance Sheet as at 31st March, 2020 stood as follows:
Balance Sheet
Dr.
Cr.
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
||
|---|---|---|---|---|---|
Capital Accounts: Sunaina Tamanna Current Accounts: Sunaina Tamanna General Reserve Workmen’s Compensation Reserve Creditors |
60,000 80,000 10,000 30,000 |
1,40,000 40,000 1,20,000 50,000 1,50,000 |
Plant & Machinery Land & Buildings Debtors Less: Provision for Doubtful Debts Stock Cash Goodwill |
1,90,000 (40,000) |
1,20,000 1,40,000 1,50,000 40,000 30,000 20,000 |
| 5,00,000 | 5,00,000 |
They agreed to admit Pranav into partnership for 1/5th share of profits on 1st April, 2020, on the following terms:
- All Debtors are good.
- Value of land and building to be increased to ₹1,80,000.
- Value of plant and machinery to be reduced by ₹20,000.
- The liability against Workmen’s Compensation Fund is determined at ₹20,000 which is to be paid later in the year.
- Mr. Anil, to whom ₹40,000 were payable (already included in above creditors), drew a bill of exchange for 3 months which was duly accepted.
- Pranav to bring in capital of ₹1,00,000 and ₹10,000 as premium for goodwill in cash.
Journalize.
Marks-8, CBSE:2020-21/Sample/Q-21*
Answer :