Yuv and Veer were partners in a firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet as on 31st March, 2022 was as under:
Balance Sheet of Yuv and Veer as at 31st March, 2022
|Creditors||41,000||Plant and Machinery||60,000|
|Yuv 79,000||Debtors 38,000|
|Veer 48,000||1,27,000||Less: Provision for
Doubtful Debts 4,000
They decided to admit Yash in the firm on 1st April, 2022 for 1/4th share in profits on the following terms:
(i) Yash will bring in proportionate capital and ₹4,000 as his share of goodwill premium in cash.
(ii) Investments were valued at ₹68,000.
(iii) Plant and Machinery was to be depreciated by 10%.
Prepare Revaluation Accounts and Partners Capital Accounts