The following is the statement of financial position balance sheet of Banabas and Kelvin, who are
carrying on partnership business as on June Banabas and Kelvin share profit in the ratio :
Statement of financial position as at June
Portia is admitted as a partner on the date of the statement of financial position on the following terms:
Portia will bring in P as his capital and P as his share of goodwill. The new profitsharing ratio will be :: for Banabas, Kelvin and Portia respectively.
Goodwill will be maintained in the books.
Plant and machinery is to be appreciated to P and the value of Land and buildings is to be appreciated by
Inventory is found to be overvalued by P
A provision for doubtful debts is to be created at of trade receivables.
Prepare the: i Revaluation account ii Partners capital accounts and iii Statement of financial position of the constituted firm after the admission of Portia
