Ashish and Vishesh were partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as at 31st March, 2022 was as under:
Balance Sheet of Ashish and Vishesh as at 31st March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 30,000 | Cash at Bank | 50,000 |
| Outstanding Electricity Bill | 20,000 | Debtors 80,000 | |
| Capitals: | Less: Provision for Bad Debts 2,000 |
78,000 |
|
| Ashish 3,00,000 | Stock | 1,12,000 | |
| Vishesh 2,00,000 | 5,00,000 | Machinery | 3,00,000 |
| Profit and Loss A/c | 10,000 | ||
| 5,50,000 | 5,50,000 |
On 1st April, 2022, Manya was admitted into the firm with 1/4th share in the profits on the following terms:
- Manya will bring ₹1,00,000 as her capital and ₹50,000 as her share of goodwill premium in cash.
- Outstanding electricity bill will be paid off.
- Stock was found over valued by 12,000.
Pass the necessary journal entries in the books of the firm on Manya’s admission.
Marks-6, CBSE:2022-23/Zone-5/Set-1/Q-24*
Answer :