A and B were partners in a firm sharing profits and losses in the ratio of 3: 1. On 31.03.2022, their Balance Sheet was as follows:
Balance Sheet of A and B as at 31st March, 2022
|Sundry Creditors||1,40,000||Bills Receivables||70,000|
|General Reserve||80,000||Debtors 1,00,000|
|Capitals:||Less: Provision for
Doubtful debts 5,000
|Land and Building||2,83,000|
On the above date, C was admitted as a new partner for 1/5th share in the profits on the following terms:
- C will bring ₹2,00,000 as her capital and ₹1,60,000 as her share of goodwill premium.
- Stock will be appreciated by ₹1,500.
- Debtors of ₹5,000 will be written off as bad debts and a provision of 10% for bad and doubtful debts will be maintained.
Prepare Revaluation Account and Partners’ Capital Accounts.