Ashish and Vishesh were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2022 was as under:
Balance Sheet of Ashish and Vishesh as at 31st March, 2022
| Liabilities | ₹ | Assets | ₹ | ||
| Creditors Outstanding Electricity Bill Capital A/cs: Ashish Vishesh |
30,000 20,000 3,00,000 2,00,000 |
Cash at Bank Debtors Less: Provision for Bad Debts Stock Machinery Profit and Loss A/c |
80,000 2,000 |
50,000 78,000 1,12,0003,00,000 10,000 |
|
| 5,50,000 | 5,50,000 |
On 1st April, 2022, Manya was admitted into the firm with 1/4th share in the profits on the following terms:
- Manya will bring ₹ 1,00,000 as her capital and ₹ 50,000 as her share of goodwill premium in cash.
- Outstanding electricity bill will be paid off.
- Stock was found over valued by ₹ 12,000.
Pass the necessary Journal entries in the books of the firm on Manya’s admission.
Solution :
