BALANCE SHEET as at 31st March, 2019
|Capital A/c :||Furniture||95,000|
|A – 1,20,000||Business Premises||2,05,000|
|B – 1,20,000||Stock-in-Trade||40,000|
|C – 1,20,000||3,60,000||Debtors||28,000|
|Sundry Creditors||20,000||Cash at Bank||15,000|
|Outstanding Salaries and wages||7,200||Cash in Hand||4,200|
On 1st April, 2019, they admit D as a partner on the following conditions:
(a) D will bring in Rs. 1,20,000 as his capital and also Rs. 30,000 as goodwill premium for a quarter of the share in the future profits/losses of the firm.
(b) Values of the fixed assets of the firm will be increased by 10% before the admission of D.
(c) Mohan, an old customer whose account was written off as bad debts, has promised to pay Rs. 3,000 in full settlement of his dues.
(d) Future profits and losses of the firm will be shared equally by all the partners.
Pass the necessary Journal entries and prepare Revaluation Account, Partners’ Capital Accounts and opening Balance Sheet of the new firm.