Amit and Barun are partners sharing profits in the ratio of 4:1. Their Balance Sheet as at 31st March, 2022, was as under: On 1st April, 2022, Charan is admitted as a new partner on the following terms:
(i) The new profit-sharing ratio of the partners to be 2:1:1. (ii) Charan to bring in ₹ 16,000 as his capital but would be unable to bring his share of goodwill in cash. (iii) The value of the goodwill of the firm to be calculated on the basis of Charan’s share in the profits and the capital contributed by him. (iv) Furniture, which had been undervalued by ₹ 600 to be brought up to its revised value. (v) Out of the total insurance premium paid, ₹ 3,400 to be treated as prepaid insurance. The amount was earlier debited to Profit & Loss Account. You are required to prepare:
(i) Revaluation Account. (ii) Partners’ Capital Accounts.
Karan and Vijay are partners in a firm sharing profits and losses in the ratio of 4:3. They admit Shrey for 𝟏/3 share in the profits. On the date of Shrey’s admission:
(a) The capitals of Karan and Vijay are: ₹ 40,000 and ₹ 30,000 respectively. (b) Profit and Loss Account has a debit balance of ₹ 7,000. (c) General Reserve shows a balance of ₹ 21,000 which is not to be disturbed. (d) Goodwill of the firm is valued at ₹ 42,000. (e) The cash at bank is ₹ 15,000. (f) Shrey brings in proportionate capital and his share of goodwill in cash.
You are required to prepare:
(i) Partners’ Capital Accounts. (ii) Cash at Bank Account of the reconstituted firm on the date of Shrey’s admission.
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