Asha and Indra were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet on 31st March, 2025 was as following :Balance Sheet of Asha and Indra as at 31st March, 2025On 1st April, 2025, Suraj was admitted for 1/4th share in the profits of the firm on the following terms :(i) Suraj will bring capital proportionate to his share in the profits of the firm.(ii) Goodwill of the firm was valued at ₹ 1,00,000 and Suraj will bring his share of goodwill premium in cash.(iii) Furniture was taken over by Asha at ₹ 1,00,000.(iv) A liability of ₹ 5,000 included in creditors was not likely to arise.(v) Plant and Machinery was revalued at ₹ 4,35,000.Prepare Revaluation Account and Partners' capital accounts on Suraj's admission. Show the calculation of proportionate capital clearly.
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When a new partner is admitted, prepare Revaluation Account for asset/liability adjustments. New partner's capital is calculated based on the adjusted capitals of old partners and his profit share.
