Question - 42 (A and B)
Manish and Navneet are equal pratners in a firm they decided to admit Durgesh as a new partner. The Balance sheet o Manish and Navneet was as follows on 31st Dec., 1995 :

                    Balance Sheet 
            As at 31st March 2008
Liabilities                                     Amount 
Creditors                                         1,000
Capital A/c 
 Manish               1,700
 Navneet              1,200                  2,900
Bills payable                                  1,000
                                                       4,900
Assets                                          Amount
Cash                                                 600
Debtors                                         1,500
Stock                                             1,400
Furniture                                          400
Machinery                                    1,000
                                                      4,900
The following adjustment should be made before admission of Durgesh:
Make a provision for Doubtful Debts Rs. 300 furniture was valued at Rs. 250 Investment Rs. 400 will be shown in books (Previously it was not mentioned in the Balance sheet) Durgesh will bring Rs. 1,000 as a capital and Rs. 1,000 for goodwill which will be drawn by manish and navneet.
Prepare journal entries and Balance sheet.
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