Question

Dhruv and Ansh are partners in a firm sharing profits and losses: Dhruv 75% and Ansh 25%. Their Balance Sheet as at 31st March, 2021 is given below: Balance Sheet of Dhruv and Ansh As at 31st March, 2021 Liabilities Amount (₹) Amount (₹) Assets Amount (₹) Amount (₹) Sundry Creditors   49,000 Cash   62,000 Workmen Comp. Reserve   5,000 Sundry Debtors 18,500 17,000 Capital A/c:   50,000 Less: Prov. for Doubtful Debts (1,500) Dhruv 30,000 Land and Building   25,000 Ansh 20,000           1,04,000     1,04,000 On 1st April 2021, Kavi is admitted as a new partner on the following terms: Land and building is found to be valued at 25% above cost. It is decided to bring it to its cost. Bad debts amounting to ₹ 1,800 are to be written off. The remaining debtors are good. Creditors include an amount of ₹ 5,000 received as commission from Amar. The necessary adjustment is required to be made. The liability on the Workmen’s Compensation Reserve is determined at ₹ 3,000. Kavi is to pay ₹ 15,000 to the existing partners as a premium for Goodwill for 20% of the future profits of the firm. He is also to bring in ₹ 25,000 as capital.

The date of the Balance Sheet of the reconstituted firm will be:

पर्याय

• Balance Sheet for the year ending 31st March, 2022.

• Balance Sheet as at 31st March, 2021.

• Balance Sheet for the year ending 1st April, 2021.

• Balance Sheet as at 1st April, 2021.

Answer 1

Balance Sheet as at 1st April, 2021.

Explanation:

This is because Kavi is admitted as a partner on 1st April 2021, and the adjustments and reconstitution are being made from that date onwards.