The Balance Sheet of a Partnership Firm M/s Dutch and Associates consisted of two partners P and Q who were sharing Profits and Losses in the ratio of 5:3 respectively. The position as on 31st March, 2024 was as follows: Liabilities Amount Assets Amount P's Capital Q's Capital Profit & Loss A/c Trade Creditors 4,10,000 3,30,000 1,12,000 54,800 Land & Building Plant & Machinery Furniture Stock Sundry debtors Cash at Bank 3,80,000 1,70,000 1,09,480 1,45,260 60,000 42,060 9,06,800 9,06,800 On the above date, R was admitted as a partner on the following terms: (a) R should get 1/5th of share of profits. (b) R brought 2,40,000 as his capital and 32,000 for his share of Good- will. (c) Plant and Machinery would be depreciated by 15% and Land & Buildings would be appreciated by 40%. (d) A provision for doubtful debts to be created at 5% on sundry debtors. (e) An unrecorded liability of ₹ 6,000 for repairs to Buildings would be recorded in the books of account. (f) Immediately after R's admission, Goodwill brought by him would be adjusted among old partners. Thereafter, the capital accounts of old partners would be adjusted through the current accounts of partners in such a manner that the capital accounts of all the partners would be in their profit sharing ratio. Prepare revaluation A/c, capital Accounts of the partners, new profit sharing ratio and Balance Sheet of the firm after the admission of R. [MTP Jan. 2025]
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