Mita and Vihaan were partners in a firm sharing profits and losses in the ratio of 3: 2. On 31st March, 2024 their Balance Sheet was as follows:
Balance Sheet of Mita and Vihaan as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
|---|---|---|---|---|---|
| Sundry Creditors | 2,00,000 | Cash | 50,000 | ||
| Capitals: | Sundry Debtors | 2,00,000 | |||
| Mita | 4,00,000 | Less: Provision for doubtful debts | 7,000 |
1,93,000 |
|
| Vihaan | 3,00,000 | 7,00,000 | Stock | 2,50,000 | |
| Plant and Machinery | 3,50,000 | ||||
| Patents | 57,000 | ||||
| Total | 9,00,000 | Total | 9,00,000 | ||
On the above date, Zen was admitted as a new partner for 4/15th share in the profits on the following terms:
- Zen will bring ₹3,00,000 as his capital and his share of goodwill premium in cash. On Zen’s admission, goodwill of the firm was valued at ₹4,12,500.
- The provision for bad debts will be maintained at 5% of the debtors.
- Stock will be valued at ₹2,00,000, plant and machinery at ₹4,00,000 and patents at ₹1,20,000.
- There was a bill of ₹30,000 for goods purchased which was omitted from the books.
Pass necessary journal entries for the above transactions in the books of the firm on Zen’s admission.
Marks-6, CBSE: 2024-25/Zone-6/Set-1/Q-24(b)
Answer :
