17. Dodo and Fodo are partners in a firm. Their balance sheet as on 31st December, 2019 is given below : Balance Sheet Liabilities Capital accounts: Dodo Fodo Reserve Creditors Bank overdraft Amount ₹ Assets Amount ₹ 60,000 20,000 40,000 50,000 20,000 6,000 1,96,000 Plant and machinery 50,000 Furniture 30,000 Stock 16,000 Debtors 60,000 Bills receivable 40,000 Cash 1,96,000 Partners agreed to admit Ludo as a new partner from 1st January, 2020. The following terms and conditions have been agreed upon : (i) Plant and machinery is to be depreciated by 10%. (ii) Furniture is to be revalued at 25,000. (iii) Stock is to be reduced by 20%. (iv) Ludo is to introduce 40,000 as his capital for 1/5th share of profit. Pass necessary Journal entries in the books of the firm and give Balance Sheet after admission of the new partner. [WBHS]
