Star and Moon were partners in a firm sharing profits in the ratio of 3 : 2. On 31st March, 2024 the Balance Sheet of the firm was as follows:
They admitted Sun into partnership on 1st April, 2024 for 1/10 share. It was agreed as follows:
Sun brings ₹6,00,000 as capital but could not bring goodwill in cash.
Goodwill is valued at ₹4,00,000.
Provision on debtors is required @10%.
Interest on Bank Loan for 6 months is due @12% p.a.
Liability to workers is ₹15,000 against Workmen Compensation Reserve.
Unrecorded stock of ₹40,000 is taken by Star at ₹38,000.
Prepare Revaluation Account and Partners’ Capital Accounts.
