To analyze the partnership scenario involving Abha, Ritu, and the newly admitted partner Sonal, we will go through the necessary calculations and adjustments step by step.

Initial Partnership Details

Abha and Ritu share profits and losses in the ratio of 5:3. Their balance sheet as of March 31, 2022, is as follows:

Liabilities

• Bills Payable: Rs. 22,000
• Creditors: Rs. 45,000
• Workmen Compensation Fund: Rs. 40,000
• General Reserve: Rs. 24,000
• Profit and Loss A/c: Rs. 0
• Capital Accounts:
  • Abha: Rs. 3,75,000
  • Ritu: Rs. 2,25,000

Assets

• Cash in Hand: Rs. 12,000
• Cash at Bank: Rs. 83,000
• Debtors: Rs. 82,000
• Stock: Rs. 66,000
• Investments: Rs. 60,000
• Furniture: Rs. 3,75,000
• Machinery: Rs. 2,25,000
• Goodwill: Rs. 7,07,000

Admission of Sonal

On April 1, 2022, Sonal is admitted into the partnership for a 1/4th share, which she acquires from Abha and Ritu in the ratio of 2:1 respectively.

Calculating Shares Transferred

1. Total shares of Abha and Ritu = 5+3=85+3=8
2. Sonal’s share = 14​of total shares = 14×8<br>=2

Sonal takes:

• From Abha = 23×2=43 shares (equivalent to 43×58=56of her share)
• From Ritu = 13×2=23shares (equivalent to 23×38=14 of her share)

New Profit-Sharing Ratio

After Sonal’s admission:

• New profit-sharing ratios are calculated as follows:
  • Abha’s new share = 5−43=113​
  • Ritu’s new share = 3−23=73​
  • Sonal’s share remains 2
    

Total shares now = 11/3+7/3+2=(11+7+6)/3=24/3=811/3+7/3+2=(11+7+6)/3=24/3=8

Thus,

• New ratio:
  • Abha’s ratio = (11/3)/(8/3)=11/24
    
  • Ritu’s ratio = (7/3)/(8/3)=7/24
    
  • Sonal’s ratio = 2/(8/3)=6/24
    

So the new profit-sharing ratio is 11:7:6.

Goodwill Adjustment

The goodwill of the firm is valued at Rs. 96,000.

Sonal’s Share of Goodwill

Sonal’s share of goodwill:
Sonal s Share=14×Rs.96,000=Rs.24,000

Sonal s Share=41​×Rs.96,000=Rs.24,000

Since Sonal cannot contribute this amount in cash:

• Abha will sacrifice:
  Abha s SacrificeAbha s Sacrifice=Rs.24,000×23=Rs.16,000
• Ritu will sacrifice:
  Ritu s Sacrifice=Rs.24,000×13=Rs.8,000
  

Provision for Doubtful Debts

A provision for doubtful debts of Rs.6,000 needs to be created by adjusting the debtors’ account.

Updated Balance Sheet Adjustments

After accounting for goodwill adjustments and the provision for doubtful debts:

Liabilities

• Bills Payable: Rs. 22,000
• Creditors: Rs. 45,000
• Workmen Compensation Fund: Rs. 40,000
• General Reserve: Rs. 24,000
• Profit and Loss A/c: Rs.0
• Capital Accounts:
  • Abha Capital after adjustment: 375000−16000=Rs.359000375000−16000=Rs.359000
  • Ritu Capital after adjustment: 225000−8000=Rs.217000225000−8000=Rs.217000
  • Sonal Capital: 00

Assets

After creating a provision for doubtful debts:

• Cash in Hand: Rs.12,000
• Cash at Bank: Rs.83,000
• Debtors after provision adjustment: 82,000−6,000=Rs.76,00082,000−6,000=Rs.76,000
• Stock: Rs.66,000
• Investments: Rs.60,000
• Furniture: Rs.375,000
• Machinery: Rs.225,000
• Goodwill (new valuation): Rs.96,000

Final Totals

Total Liabilities and Assets should balance out after these adjustments.This comprehensive analysis provides a clear understanding of how to adjust the partnership structure upon Sonal’s admission while considering goodwill contributions and provisions for doubtful debts effectively.