Question No 68 of TS Grewal (CBSE)
Q) A and B are partners in a firm. Net Profit of the firm is divided as follows: 1/2 to A, 1/3 to B and 1/6 carried to a Reserve. They admit C as a partner on 1st April, 2023 on which date, the Balance Sheet of the firm was:
Liabilities | Rs. | Assets | Rs. |
Capital A/c’s A B Reserve Creditors Outstanding Expenses | 50,000 40,000 10,000 20,000 5,000 1,25,000 | Building Plant and Machinery Stock Debtors Bank | 50,000 30,000 18,000 22,000 5,000 1,25,000 |
Following are the required adjustments on admission of C:
- C brings in Rs. 25,000 towards Capital.
- C also brings in Rs. 5,000 for 1/5th share of goodwill.
- Stock is undervalued by 10%.
- Creditors include a liability of Rs. 4,000, which has been decided by the court at Rs. 3,200.
- In regard to the Debtors, the following Debts proved Bad or Doubtful –
Rs. 2,000 due from X- bad to the full extent;
Rs. 4,000 due from Y – insolvent, estate expected to pay only 50%.
You are required to prepare Revaluation Account
Solution No 68 of TS Grewal (CBSE)
