Anand and Balu are partners in a firm sharing profits and losses in the ratio of 7:3. Their
balance sheet as on 31st March, 2018 is as follows:
| Liabilities |
Rs. |
Rs. |
Assets |
Rs. |
| Capital accounts: |
|
|
Land |
60,000 |
| Anand |
50,000 |
|
Stock |
40,000 |
| Balu |
30,000 |
80,000 |
Debtors |
20,000 |
| Sundry creditors |
|
20,000 |
Cash in hand |
10,000 |
| Profit and loss A/c |
|
30,000 |
|
|
| |
|
1,30,000 |
|
1,30,000 |
Chandru is admitted as a new partner on 1.4.2018 by introducing a capital of Rs.20,000 for 1/4 share in the future profit subject to the following adjustments:
(a) Stock to be depreciated by Rs.3,000
(b) Provision for doubtful debts to be created for Rs.2,000.
(c) Land was to be appreciated by Rs.10,000
Prepare revaluation account and capital account of partners after admission.
