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Alex47. The Balance Sheet of A and B as on 31st March, 2020 is given below. The profit Share33,480 ; B: 22,320 ; C:15,000)doratio is 2:1.BALANCE SHEETPrepare(Ans.Capit:7100003.00049. The B30.00030003.000As CapitalB's CapitalGeneral reserCreditors55.000LlabilitiesAssetsCapitalFreehold propertyA20,000 FurnitureB15,000 StockGeneral Reserve12,000 DebtorsCreditors8,000 CashProfit and Loss A/C5,000C was admitted on the following terms:(a) C will bring * 10,500 of which *4,500 will be for goodwill.1(b) He will getth share of profits.4(c) 40% of General reserve is to be kept as reserve for doubtful debts.(d) Increase stock by * 1,500.(e) Depreciate furniture by 500.Show Journal entries giving effect to the aforesaid arrangements and prepare openingBalance Sheet.(Ans. Revaluation Profit 1,000 ; Balance Sheet total 58,700 ; Capitals A # 26,467; B18,233 ; C* 6,000)​

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