Question

Anikesh and Bhavesh are partners in a firm sharing profits in the ratio of 7:3. Their Balance Sheet as on 31\textsuperscript{st March, 2023 was as follows:} \[ \begin{array}{|c|c|c|} Liabilities & Amount (\rupee) & Assets & Amount (\rupee)
Creditors & 60,000 & Cash & 36,000
Outstanding Wages & 9,000 & Debtors & 54,000
General Reserve & 15,000 & Less: Provision for Doubtful Debts (6,000) & 48,000
Capitals: & & Stock & 60,000
\quad Anikesh & 1,20,000 & Furniture & 1,20,000
\quad Bhavesh & 1,80,000 & Machinery & 1,20,000
Total & 3,84,000 & Total & 3,84,000
\end{array} \] On 1\textsuperscript{st April, 2023, Chahat was admitted for 1/4\textsuperscript{th} share in the profits on the following terms:}
(i) Chahat will bring \rupee 90,000 as her capital and \rupee 30,000 as her share of Goodwill premium.
(ii) Outstanding wages will be paid.
(iii) Stock will be reduced by 10\%.
(iv) creditor of \rupee 6,300, not recorded in the books, was to be taken into account. Pass necessary Journal Entries for the above transactions in the books of the firm.

Hint:

Adjust goodwill in the old profit-sharing ratio and revalue assets and liabilities before admitting a new partner.

Answer 1

Journal Entries: \begin{center} \begin{tabular}{|c|c|c|c|} Date & Particulars & Debit (\rupee) & Credit (\rupee)
2023-04-01 & Cash A/c & 90,000 &
& To Chahat’s Capital A/c & & 90,000
2023-04-01 & Cash A/c & 30,000 &
& To Premium for Goodwill A/c & & 30,000
2023-04-01 & Premium for Goodwill A/c & 30,000 &
& To Anikesh’s Capital A/c (7/10) & & 21,000
& To Bhavesh’s Capital A/c (3/10) & & 9,000
2023-04-01 & Outstanding Wages A/c & 9,000 &
& To Cash A/c & & 9,000
2023-04-01 & Stock A/c & 6,000 &
& To Revaluation A/c & & 6,000
2023-04-01 & Revaluation A/c & 6,300 &
& To Creditors A/c & & 6,300
\end{tabular} \end{center}