question_answer

X and Y are partners sharing profits equally. They admit Z for 1/3rd share in profits. Following information is available at the time of admission of Z.

Liabilities Amount Assets Amount     Debtors 60,000       Less: Provision for Doubtful debts 5,000

Additional information : Bad debts amounting to Rs. 7,000 are to be written off. Yash, an old customer who was declared insolvent by the court and whose account was written off as bad debts before 2 years for Rs. 10,000, has promised to pay 40% of the amount.

Final value of Debtors will be shown in new Balance Sheet:

 

A) 53,000

B) 57,000

C) 60,000 

D) 55,000