2. A B and Care in partnership sharing profit and losses in the ratio 3:2:1. They agree to admit D when their balance sh

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2 A B And Care In Partnership Sharing Profit And Losses In The Ratio 3 2 1 They Agree To Admit D When Their Balance Sh 1 (66.42 KiB) Viewed 12 times

2. A B and Care in partnership sharing profit and losses in the ratio 3:2:1. They agree to admit D when their balance sheet is as follows: AB and C partnership Balance sheet as at 31st December 2015 Non-current assets Land and buildings Plant and machinery Current assets Stock Debtors Cash Current liabilities Creditors Net assets Financed by: Capital Current account 4,000,000 3,000,000 7,000,000 2,000,000 1,000,000 500,000 3,500,000 (3,200,000) 300,000 7,300,000 A 3,000,000 B 2,000,000 C 1,000,000 A 500,000 B 500,000 C 300,000 6,000,000 1,300,000 7,300,000 For the purpose of admitting D the following was agreed FUD i) Asset value a) Land and building 4,500,000 3,500,000 b) Plant and machinery c) Stock 2,200,000 d) Goodwill 600,000 ii) New profit sharing ratio is 3:1:1:1 for A B C and D respectively. iii) D is to bring in capital so as to equal that of C after writing off goodwill. Required: Draw the relevant books of accounts and balance sheet after admission.(