Page 3 - Home Assignment QUES

Outstanding Expenses 50,000 Cash at Bank 1,20,000
General Reserve 60,000 Bills Receivable 1,00,000
Profit and Loss A/c 90,000 Sundry Debtors 1,10,000
Capital A/cs: Less: Provision for Doubtful Debts 10,000 1,00,000
X 2,00,000 Stock 1,00,000
Y 2,20,000 4,20,000 Machinery 1,60,000
Goodwill 30,000

7,00,000 7,00,000

Z joins as a new partner for one third share & new profit
sharing ratio is 1:1:1 .

1) Z brings 2,50,000 as capital & cash for his share of

goodwill

2) goodwill of firm valued at 4,50,000

3) machine undervalued by 20%

4) all debtors are good

5) creditors of 15,000 are not recorded

Prepare Revaluation Account, Partners’ Capital

Accounts and Balance Sheet of the reconstituted firm.