Neerav and Madhur are partners in a firm sharing profits and losses in the ratio 3:2.They admit Gopal into partnership for 1/4th share of profits.He brings in his share of goodwill in cash and proportionate capital.
Liabilities
creditors 56,000
general reserve 64,000
Neerav's capital 1,20,000
Madhur's capital 80,000
Assets
bank 20,000
Debtors 1,20,000
(1,30,000-reserve 10,000)
Stock 60,000
Investments 1,00,000
Patents 20,000
Additional Information:
- goodwill of the firm was valued at rs.1,00,000
- unaccounted accrued income of rs.1000 was to be provided for
- the market value of investments was rs.90,000
- a debtor whose dues of rs.2,000 were written off as bad debts were paid rs.1600 in full settlement
- patents were undervalued by rs.20,000