Partnership formation of Mr. Dabloo, & Mr.Babloo

Mr. Dabloo works as a civil engineer in a reputed firm. He is quiting his job to start his own business of supplying mineral water to various households with Mr. Babloo who is already engaged in this business. They have agreed to share profits in 90:10 respectively. Following are details of their investment in the business.

Mr. Dabloo                RUPEES

CASH IN HAND                5,000
CASH AT BANK                100,000
Filtration plant                70,000
Office SUPPLIES              50,000
Delivery van                    500,000

Mr. Babloo

CASH AT BANK               20,000
FURNITURE                     25,000
Filtration licence            60,000
Filtration chemicals      10,000

REQUIRED: Prepare journal entries in the books of new partnership firm.

Answer: Will be updated shortly.