| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Creditors | 30,000 | Cash at Bank | 20,000 |
| Investment Fluctuation Fund | 12,000 | Debtors – 85,000 | |
| General Reserve | 25,000 | Less: Provision for Bad Debts – (5,000) | 80,000 |
| Capitals A/cs: | Stock | 1,30,000 | |
| A – 1,60,000 | Investments | 60,000 | |
| B – 1,40,000 | 3,00,000 | Furniture | 77,000 |
| 3,67,000 | 3,67,000 |
On 1st April, 2019, they decided to admit C as a new partner for 1/5th share in the profits on the following terms:
(i) C brought Rs. 1,00,000 as his capital and Rs. 50,000 as his share of premium for goodwill.
(ii) Outstanding salaries of Rs. 2,000 be provided for.
(iii) The market value of investments was Rs. 50,000.
(iv) A debtor whose dues of Rs. 18,000 were written off as bad debts paid Rs. 12,000 in full settlement.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm. (CBSE 2020)
SOLUTION
