DK Goel Solutions Q 66 Chapter 3 Admission of a Partner Class 12 CBSE [2023-24]

A and B are in partnership sharing profits and losses in the ratio of 3 : 2. On 1st April 2022, they admitted C into partnership. He paid ₹ 50,000 as his capital but nothing for Goodwill which was valued at ₹ 40,000 for the time. He acquired 1/5th share in the profits, equally from both partners. It was also decided that:

1. (i) Land and Building be written off by ₹ 20,000;
2. (ii) Stock be written down by ₹ 3,200.
3. (iii) A provision of ₹ 1,000 be created for doubtful debts; and
4. (iv) An amount of ₹ 1,200, included in Sundry Creditors, be written off as it is no longer payable.

(Balance Sheet total ₹2,01,200)