question_answer

You are required to answer the following questions 52 to 59 :

Ram and Shyam are partners in a firm sharing profits in the ratio of 3:1. Their Balance sheet as at 31st March 2021 was as follows:

Liabilities Amount Assets Amount Capital A/cs: Ram 6,000 Investment 5,000 Shyam     4,000 10,000 Stock 3,000 Creditors 2,800 Debtors 6,500 Workmen Compensation Reserve 1,200 Less: Provision for Doubtful debts 500 6,000 General Reserve 2,000 Cash at Bank 2,000 16,000 16,000

They decided to admit Mohan as a partner in a firm on 1st April 2021 for 1/5th share on the following terms:

(i) Mohan to bring Rs.5,000 as his capital. Goodwill of the firm valued at Rs.30,000 and Mohan will bring his share premium in cash.

(ii) That unaccounted accrued income of Rs.100 be provided for.

(iii) Investment was revalued at Rs.4,500.

(iv) A debtor whose dues of Rs.500 was written off as bad debts, now paid Rs.400 in full settlement.

(v) A claim of Rs.200 on account of workmen compensation to be provided for.

New Profit Sharing Ratio of the partners:

A) 3:1:1

B) 3:2:1

C) 3:1:2    

D) 3:3:2