A and B share profit in the ratio of 3: 1. Their Balance sheet as on 31st March 200 is as under. Creditors General Reserve Capital: A B Rs. 37,500 4,000 30,000 16,000 87,500 Cash at bank Bills Receivable Stock Debtors Furniture Building Rs. Buildings to be appreciated by 20%. Give the necessary ledger accounts and Balance Sheet. 22,500 3,000 20,000 16,000 1,000 25,000 87,500 On 1.4.2005 they admit C as a new partner on the following arrangement: (a) C to bring Rs. 10,000 as capital for 1/5 share of profit. (b) The firm's goodwill is valued of Rs. 10,000 (c) Stock and Furniture to be reduced by 10%, a reserve of 5% on debtors for doubtful debts to be created. (d) Buildings to be appreciated by 20%.
give the necessary ledger accounts and balance sheet
