Question

Ashish and Vishesh were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31^st March, 2022 was under:

Balance Sheet of Ashish and Vishesh as at 31st March, 2022
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Creditors		30,000	Cash at Bank		50,000
Outstanding Electricity Bill		20,000	Debtors	80,000	78,000
Capitals:			Less: Provision for Bad Debts	(2,000)
Ashish	3,00,000	5,00,000	Stock		1,12,000
Vishesh	2,00,000		Machinery		3,00,000
			Profit and Loss A/c		10,000
		5,50,000			5,50,000

On 1^st April, 2022, Manya was admitted into the firm with 1/4th share in the profits on the following terms:

1. Manya will bring ₹ 1,00,000 as her capital and ₹ 50,000 as her share of goodwill premium in cash.
2. Outstanding electricity bill will be paid off.
3.  Stock was found overvalued by ₹ 12,000.

Pass the necessary journal entries in the books of the firm on Manya's admission

Answer 1

Journal
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2022 1Apr.	Ashish's Capital A/c  ...Dr.		6,000
	Vishesh' Capital A/c  ...Dr.		4,000
	To Profit and Loss A/c			10,000
	(Being the loss transferred to Old Partners' Capital Accounts in their old ratio)
1 Apr.	Bank A/c   ...Dr.		1,50,000
	To Manya's Capital A/c			1,00,000
	To Premium for Goodwill A/c			50,000
	(Being the capital and premium for goodwill brought in cash by Manya)
1 Apr.	Premium for Goodwill A/c   ...Dr.		50,000
	To Ashish's Capital A/c			30,000
	To vishesh's Capital A/c			20,000
	(Being premium for goodwill credited to Ashish and Vishesh in their sacrificing ratio, i.e., 3 : 2).
1 Apr.	Outstanding Electricity Bill A/c    ...Dr.		20,000
	To Bank A/c			20,000
	(Being outstanding electricity bill paid)
1 Apr.	Revaluation A/c       ...Dr.		12,000
	To Stock A/c			12,000
	(Being decrease in value of stock)
1 Apr.	Ashish's Capital A/c  ...Dr.		7,200
	Vishesh' s Capital A/c  ...Dr.		4,800
	To Revaluation A/c			12,000
	(Being loss on revaluation transferred to old partners' capital accounts in their old ratio)