Question

Anikesh and Bhavesh are partners in a firm sharing profits in the ratio of 7 : 3. Their Balance Sheet as on 31^st March, 2023 was as follows:

Balance Sheet of Anikesh and Bhavesh as on 31st March, 2023
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Creditors		60,000	Cash		36,000
Outstanding wages		9,000	Debtors	54,000	48,000
General Reserve		15,000	Less: Provision for doubtful debts	6,000
Capitals:			Stock		60,000
Anikesh	1,20,000	3,00,000	Furniture		1,20,000
Bhavesh	1,80,000		Machinery		1,20,000
		3,84,000			3,84,000

On 1^st April, 2023 Chahat was admitted for 1/4^th share in the profits on the following terms:

1. Chahat will bring ₹ 90,000 as her capital and ₹ 30,000 as her share of Goodwill premium. 
2. Outstanding wages will be paid.
3. Stock will be reduced by 10%.
4. A creditor of ₹ 6,300, not recorded in the books, was to be taken into account.

Pass necessary Journal Entries for the above transactions in the books of the firm. 

Answer 1

Journal Entries
Date	Particulars	L.F.	Amount (₹)	Amount (₹)
1.	Cash A/c   ...Dr.		1,20,000	-
	To Chahat's Capital A/c		-	90,000
	To Premium for Goodwill A/c		-	30,000
	(Being new partner bought cash for his share)
2.	Premium for goodwill A/c   ...Dr.		30,000	-
	To Anikesh's Capital A/c		-	21,000
	To Bhavesh's Capital A/c		-	9,000
	(Being premium for goodwill adjusted)
3.	Outstanding wages A/c   ...Dr.		9,000	-
	To Cash A/c		-	9,000
	(Being outstanding Wages paid)
4.	Revaluation A/c   ...Dr.		12,300	-
	To Stock A/c		-	6,000
	To Creditor A/c		-	6,300
	(Being stock value reduced and unrecorded liability recorded)
5.	Anikesh's Capital A/c   ...Dr.		8,610	-
	Bhavesh's Capital A/c   ...Dr.		3,690	-
	To Revaluation A/c		-	12,300
	(Being revaluation loss transferred to Capital A/c in old ratio)
6.	General Reserve A/c   ...Dr.		15,000	-
	To Anikesh's capital A/c		-	10,500
	To Bhavesh's Capital A/c		-	4,500
	(Being general reserve transferred to Capital A/c in old ratio)