12. P and R were partners in a firm sharing profits in the ratio of 3:1. On 31-3-
2019. Q admitted to the firm. On the date of admission, the Balance Sheet
of the firm was as following
Liabilities
Amount
₹
Assets
Amount
Creditors
Bills Payable
27,000 Bank
27,600
12,000 Debtors
6,000
Outstanding Salary
2,200 Less: Provision 400
5,600
Provision for Legal Claims
6,000 Stock
9,000
Capitals:
P 66,000
Furniture
Building
4,100
96,900
R
30,000
96,000
1,43,200
1,43,200
On Q's admission, it was agreed that
New profit sharing ratio of P: R: Q will be 3:1:2.
Premisses will be appreciated by 2% and furniture will be appreciated by
*1,700. Stock will be depreciated by 10%. 5% provision for doubtful debts
was to be made on debtors and 7,200 for legal damages. Goodwill of
the firm was valued at 24,000. Q will bring sufficient amount of cash for
goodwill and capital in such a way that his capital is 1/3 of the capital of the
firm after his admission.
Prepare Revaluation Account, Partners Capital Accounts and the Balance
Sheet of P, R and Q's.
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