A, and B are partners sharing profits in the ratio of 2:3. Their balance sheet shows machinery at ₹2,00,000; stock ₹80,000, and debtors at ₹1,60,000. C is admitted and the new profit sharing ratio is 6:9:5. Machinery is revalued at ₹1,40,000 and a provision is made for doubtful debts @5%. A’s share in loss on revaluation amount to ₹20,000. Revalued value of stock will be:
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
A, and B are partners sharing profits in the ratio of 2:3. Their
at ₹2,00,000; stock ₹80,000, and debtors at ₹1,60,000. C is admitted and the new profit
sharing ratio is 6:9:5. Machinery is revalued at ₹1,40,000 and a provision is made for
doubtful debts @5%. A’s share in loss on revaluation amount to ₹20,000. Revalued value of
stock will be:
(a) ₹62,000 (b) ₹1,00,000 (c) ₹60,000 (d) ₹98,000
Step by step
Solved in 2 steps
