2. The Following was the balance sheet of Khan, Ismail and Nandy who share profits...
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2. The Following was the balance sheet of Khan, Ismail and Nandy who share profits and losses in the proportion of One half, one third and one sixth respectively. Liabilities Assets Amount (RO) Amount (RO) 5,000 Creditors Capital Khan Ismail Nandy 57,000 32,000 16,000 Land and Buildings Machinery Stock Debtors Cash 48,000 7,000 29,000 25,200 800 110,000 110,000 They agreed to take Ashish into partnership as from 1st January 2020, giving him 1/6th share in the profits on the following terms: a. That Ashish should bring in RO 3,000 as Goodwill and RO 8,000 as his capital. b. That Machinery be depreciated by 12 percent and Stock by 10 percent c. That a provision for 5 percent be created for doubtful debts d. That the value of Land and Buildings be brought upto RO 62,000 Record Necessary Journal Entries and Prepare Revaluation accounts, partners' capital accounts and Balance sheet of the new firm
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