Ganga, Yamuna are partners sharing profits and losses in 3:2 respectively.
Their position on 31. 3. 2013.
Balance sheet as on 31.03.2013
On 1st April, 2013, they admitted Saraswati on the following terms:
(1) Saraswati should bring in cash Rs. 1,00,000 as capital for 1/5 share in future profit and Rs. 25,000, as goodwill.
(2) Building should be revalued for Rs. 1,25,000.
(3) Depreciate Furniture at 12 1/2 % p.a. And stock at 10%.
(4) R.D.D. should be maintained as it is.
(5) The capital accounts of partners should be adjusted in their new profit sharing ratio through bank account.
Prepare: (1) Profit and loss adjustment account. (2) Capital Account. (3) Balance sheet of new firm.
