BALANCE SHEET OF ABHIR AND DIVYA as on 31st March, 2017
|Creditors||2,20,000||Cash at Bank||1,40,000|
|Employees’ Provident Fund||1,00,000||Debtors – 6,50,000|
|Investment Fluctuation Fund||1,00,000||Less: Provision for Bad Debts – (50,000)||6.00,000|
|Capitals:||Investments (Market value Rs. 4,40,000)||5,00,000|
|Abhir – 6,00,000|
|Divya – 4,00,000||10,00,000|
They decided to admit Vibhor on 1st April, 2017 for 1/5th share.
(a) Vibhor shall bring Rs. 80,000 as his share of goodwill premium.
(b) Stock was overvalued by Rs. 20,000.
(c) A debtor whose dues of Rs. 5,000 were written off as bad debts, paid Rs. 4,000 in full settlement.
(d) Two months’ salary @ Rs. 6,000 per month was outstanding