Madhav and Girdhuri were partners in a firm sharing profits and Losses in the ratio of 3:1. Their balance sheet as at 31 March, 2022 was as follows
Balance sheet of Madhav and Girdhari as on 31 March, 2022
|Girdhari 2,00,000||5,00,000||Debtors 1,20,000|
|Workmen’s Compensation Fund||
|Less: Provision for
Doubtful debts 10,000
|Employee’s Provident Fund||1,10,000||Cash||30,000|
On 1st April, 2022, they admitted Jyoti into partnership for l/4th share in the profits of the firm. Jyoti brought ₹1,86,000 as her capital and ₹40,000 as her share of goodwill premium in cash. The following terms were agreed upon:
(i) Stock was found undervalued by ₹23,000,
(ii) 20% of the investments were taken over by Girdhari at book value.
(iii) Claim on account of workmen’s compensation amounted to ₹70,000, which was to be paid later.
(iv) Creditors included a sum of ₹27,000 which was not likely to be claimed.
Prepare Revaluation A/c and Partners’ Capital Accounts on Jyoti’s admission,