Garner vs murray

Hi. Can someone please help me with this sum. I get it upto the repair expense that should be taken to P&L i.e., Rs.14,580/-. However, what should be the carrying value of the machinery taken over? Thanks in advance.

 


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Replies (1)
calculate net profit or loss due to unrecorded transaction and then adjust it against capital of partners then apply garner vs murray rule.

Dr. repairs 20000
cr. dep on rs. 20000 for 3 years
dr. stock overvalued Rs. 10000
net profit or loss will be adjusted in capital.

also deduct 10000 from namdev capital and then apply garner vs murray.

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