The following is the Balance Sheet of A and B as at 30th June, 2018 on which date A retired
The following is the Balance Sheet of A and B as at 30th June, 2018 on which date A retired and his son D joined that firm from 1st July, 2018 with one-fourth share in the profits of the business:
The following adjustments and arrangements have been agreed upon for the purposes of retirement and admission of partners :
1. Land to be written upto ₹30,000 and Plant to ₹50,000
2. Sufficient money to be introduced so as to leave ₹11,000 cash after payment of amount due to Raman
3. B and D to provide such fund as would make their capitals proportionate to their share of profit. Show the Journal Entries to record the above transactions.
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