Vasu and Viraj Share Profits and Losses in the Ratio of 3:2 respectively Their Balance Sheet as on 31st March 2019 was as underīalance Sheet as on 31st March, 2019 Liabilities Pass The necessary Journal Entries in the Books of a New Firm.

For the purpose of Paresh’s admission, it was agreed that the assets would be revalued as follows.Ī) Land and Building is to be valued at ₹60,000ī) Plant and Machinery to be valued at ₹16,000Ĭ) Stock valued at ₹20,000 and Furniture and Fixtures at ₹4,000ĭ) A Provision of 5% on Debtors would be made for Doubtful Debts. The term being that:ġ He shall pay ₹16,000 as his share of Goodwill 50% amount of Goodwill shall be withdrawn by the old partners.Ģ He shall have to bring in ₹20,000 as his Capital for 1/4 share in future profits.ģ. On 1st April 2017, they admit Paresh into partnership. Prepare Profit and Loss Adjustment Account, Capital Accounts, and New Balance Sheet.Īmalendu and Sameer share profits and losses in the ratio 3:2 respectively Their balance sheet as on 31st March 2017 was as under.īalance Sheet as on 31st March 2017 Liabilities The capital A/c of all partners to be adjusted in their new profit and loss ratio and excess amount be transferred to their loan accounts. Provision for bad and doubtful debts is to be maintained at 5% on the Sundry Debtors. Land and building to be valued at ₹ 45,000 and furniture to be depreciated by 10%.Ĥ. He shall bring ₹ 37,500 as his capital and ₹ 30,000 as his share of goodwill.ģ. They agreed to admit Avani as a partner on 1st April 2018 on the following terms:ġ Avani shall have 1/4th share in future profits.Ģ. Their balance sheet as on 31st March 2018 was as under.īalance Sheet as on 31st March 2018 Liabilities Vikram and Pradnya share profits and losses in the ratio 2:3 respectively.

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