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4) Balance sheet after admission (10 marks) OR c) A, B & C were in partnership sharing profits in the proportions of 5:4:3. The balance sheet of the firm as on 31st March, 2020 was under: Liabilities A Fixtures Inventories Trade receivables rade payables Rs. 40.000 1,35.930 8,200 95.120 1, 57,300 61,170 93.500 41,690 34,910 3,33,910 3,33,910 lad been suffering from ill-health and gave notice that he wished to retire. A ement was, therefore, entered into as on 31st March, 2020, the terms of which e as follows: Rs. Assets Capital account: Goodwill Cash?
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4) Balance sheet after admission (10 marks) OR c) A, B & C were in par...
And C are partners in a business. The balance sheet of the business as on 31st March, 2020 was as follows:

Liabilities Amount (Rs.) Assets Amount (Rs.)
Capital: Cash in hand and at bank 60,000
A – 1,50,000 Stock 1,50,000
B – 1,00,000 Debtors 1,00,000
C – 50,000 Furniture and fixtures 50,000
Creditors 1,00,000 Building 2,00,000
Total 5,60,000
Total 3,00,000 Total 5,60,000

On 1st April, 2020, D was admitted as a partner and it was agreed that:

a) D will bring Rs. 2,00,000 as his capital and Rs. 50,000 as his share of goodwill.
b) The value of stock was to be increased by 25%.
c) The value of furniture and fixtures was to be decreased by 10%.
d) The value of building was to be appreciated by Rs. 50,000.
e) Creditors were to be paid Rs. 80,000 in full settlement.

Prepare the balance sheet of the new firm after D’s admission.

Solution:

Calculation of new values:
a) Total capital after D’s admission = A’s capital + B’s capital + C’s capital + D’s capital = Rs. 1,50,000 + Rs. 1,00,000 + Rs. 50,000 + Rs. 2,00,000 = Rs. 5,00,000
b) Value of stock after increasing by 25% = Rs. 1,50,000 x 125% = Rs. 1,87,500
c) Value of furniture and fixtures after decreasing by 10% = Rs. 50,000 x 90% = Rs. 45,000
d) Value of building after appreciation by Rs. 50,000 = Rs. 2,00,000 + Rs. 50,000 = Rs. 2,50,000

New balance sheet after D’s admission:

Liabilities Amount (Rs.) Assets Amount (Rs.)
Capital: Cash in hand and at bank 60,000
A – 1,50,000 Stock 1,87,500
B – 1,00,000 Debtors 1,00,000
C – 50,000 Furniture and fixtures 45,000
D – 2,00,000 Building 2,50,000
Goodwill 50,000 Total 6,42,500
Creditors 80,000
Total (including goodwill) 6,92,500
Total 4,30,000

Note: The total of assets and liabilities should always be equal in a balance sheet. In this case, the total of assets and liabilities including goodwill is Rs. 6,92,500.
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4) Balance sheet after admission (10 marks) OR c) A, B & C were in partnership sharing profits in the proportions of 5:4:3. The balance sheet of the firm as on 31st March, 2020 was under: Liabilities A Fixtures Inventories Trade receivables rade payables Rs. 40.000 1,35.930 8,200 95.120 1, 57,300 61,170 93.500 41,690 34,910 3,33,910 3,33,910 lad been suffering from ill-health and gave notice that he wished to retire. A ement was, therefore, entered into as on 31st March, 2020, the terms of which e as follows: Rs. Assets Capital account: Goodwill Cash?
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4) Balance sheet after admission (10 marks) OR c) A, B & C were in partnership sharing profits in the proportions of 5:4:3. The balance sheet of the firm as on 31st March, 2020 was under: Liabilities A Fixtures Inventories Trade receivables rade payables Rs. 40.000 1,35.930 8,200 95.120 1, 57,300 61,170 93.500 41,690 34,910 3,33,910 3,33,910 lad been suffering from ill-health and gave notice that he wished to retire. A ement was, therefore, entered into as on 31st March, 2020, the terms of which e as follows: Rs. Assets Capital account: Goodwill Cash? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 4) Balance sheet after admission (10 marks) OR c) A, B & C were in partnership sharing profits in the proportions of 5:4:3. The balance sheet of the firm as on 31st March, 2020 was under: Liabilities A Fixtures Inventories Trade receivables rade payables Rs. 40.000 1,35.930 8,200 95.120 1, 57,300 61,170 93.500 41,690 34,910 3,33,910 3,33,910 lad been suffering from ill-health and gave notice that he wished to retire. A ement was, therefore, entered into as on 31st March, 2020, the terms of which e as follows: Rs. Assets Capital account: Goodwill Cash? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 4) Balance sheet after admission (10 marks) OR c) A, B & C were in partnership sharing profits in the proportions of 5:4:3. The balance sheet of the firm as on 31st March, 2020 was under: Liabilities A Fixtures Inventories Trade receivables rade payables Rs. 40.000 1,35.930 8,200 95.120 1, 57,300 61,170 93.500 41,690 34,910 3,33,910 3,33,910 lad been suffering from ill-health and gave notice that he wished to retire. A ement was, therefore, entered into as on 31st March, 2020, the terms of which e as follows: Rs. Assets Capital account: Goodwill Cash?.
Solutions for 4) Balance sheet after admission (10 marks) OR c) A, B & C were in partnership sharing profits in the proportions of 5:4:3. The balance sheet of the firm as on 31st March, 2020 was under: Liabilities A Fixtures Inventories Trade receivables rade payables Rs. 40.000 1,35.930 8,200 95.120 1, 57,300 61,170 93.500 41,690 34,910 3,33,910 3,33,910 lad been suffering from ill-health and gave notice that he wished to retire. A ement was, therefore, entered into as on 31st March, 2020, the terms of which e as follows: Rs. Assets Capital account: Goodwill Cash? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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