Anbu and Shankar are partners in a business sharing profits and losses in the ratio of 7 : 5. The balance sheet of the partners on 31.03.2018 is as follows:
Rajesh is admitted for 1/5 share on the following terms:
1. Goodwill of the firm is valued at Rs. 80,000 and Rajesh brought cash Rs. 6,000 for his share of goodwill.
2. Rajesh is to bring Rs. 1,50,000 as his capital.
3. Motor car is valued at Rs. 2,00,000; stock at Rs. 3,80,000 and debtors at Rs. 3,50,000.
4. Anticipated claim on workmen compensation fund is Rs. 10,000 5. Unrecorded investment of Rs. 5,000 has to be brought into account.
Prepare revaluation account, capital accounts and balance sheet after Rajesh’s admission.
