The Balance Sheet of Rajkumar and Rajendra Kumar as on 31 March 2012 is set out below, they share profits and losses in the ratio of 2:1.
Balance Sheet as on 31 March, 2012
They agreed to admit Dhiraj Kumar on 1 April, 2012 as a partner into the firm on the following terms on.
(1) Dhiraj Kumar to bring Rs 60,000 as capital and Rs 45,000 as a goodwill, which is to be retained in the business. He will be entitled to 1/4 share of profit of the firm.
(2) 50% of General Reserve is to remain as Reserve for doubtful debts.
(3) Furniture is to be depreciated by 5%.
(4) Stock is to be revalued at Rs 65,000/-
(5) Creditors of Rs 5,000 are not likely to claim and hence should be written off.
(6) Rent of Rs 2,000 due but not received has not been recorded in the books.
Pass necessary journal entries in the books of new firm and prepare Balance Sheet of the new firm.
