Ann and Gopu were doing sole proprietorship business of same nature. Both are close friends. On 1st April 2005, they have decided to start a partnership business and have brought their existing assets into the new firm. They share profits in the ratio of 3:2. Details of existing assets and liabilities.
|
Ann |
Gopu |
Building |
1,00,000 |
|
Plant |
- |
1,00,000 |
Furniture |
60,000 |
40,000 |
Stock |
80,000 |
1,00,000 |
Creditors |
60,000 |
40,000 |
On 31st December, 2006, they have changed their profit sharing ratio and become equal partners. The assets were then revalued as follows:
- Building is up by 10%
- Plant is down by 10%
- Furniture is up by 10%
- Stock is valued at 1,50,000
- Goodwill valued at Rs. 10,000
1. Give journal entries at to bring capital into the records on 01.04.2005.
2. Prepare :
- Revaluation A/c
- Capital A/c
3. New Balance Sheet