Mahesh and Kamlesh are partners in a business sharing profits and losses in the ratio of 2 : 1 respectively. Their Balance Sheet as of 31st March 2019 is as follows:
Balance Sheet as of 31st March 2019
They admitted Kiran on 1st April 2019 as a partner on the following terms:
1. Kiran will bring ₹ 60,000 as his capital for 1/4th share in future profit and ₹ 24,000 as goodwill which will be withdrawn by old partners.
2. Stock and Machinery are to be depreciated by 10%.
3. R.D.D. is to be maintained at 5% on debtors.
4. Building is to be appreciated by 20% and Furniture is revalued at ₹ 20,000. Prepare Profit and Loss Adjustment Account, Partners’ Capital Accounts, and Balance Sheet of the new firm.
