Aryan and Adya were partners in a firm sharing profits and losses in the ratio of 3:1. Their Balance Sheet on 31st March, 2024 was as follows:
Balance sheet of Aryan and Adya as at 31st March, 2024
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
||
|---|---|---|---|---|---|
| Capitals: | Machinery | 3,90,000 | |||
| Aryan | 3,20,000 | Furniture | 80,000 | ||
| Adya | 2 40 000 | 5,60,000 | Debtors | 90,000 | |
| Workmen's Compensation Reserve | 20,000 | Less: Provision for doubtful debts | 1,000 |
89,000 |
|
| Bank loan | 60,000 | Stock | 77,000 | ||
| Creditors | 48,000 | Cash | 32,000 | ||
| Profit & Loss Account | 20,000 | ||||
| 6,88,000 | 6,88,000 | ||||
Dev was admitted into the firm on 1st April, 2024 for 1/5th share in the profits of the firm on the following terms:
- Dev will bring capital proportionate to his share in the profits of the firm.
- Goodwill of the firm was valued at ₹2,00,000 and Dev will bring his share of goodwill premium in cash.
- Machinery was revalued at ₹4,50,000.
- A provision for doubtful debts was to be created at 5% on debtors.
- A liability of ₹3,500 included in creditors was not likely to arise.
Prepare Revaluation Account and Partners’ Capital Accounts on Dev’s admission.
Marks-6, CBSE: 2024-25/Zone-1/Set-1/Q-26(a)
Answer :
