Calculate Maheen's Capital Contribution.

Here are the general journal entries and the initial balance sheet for the formation of the M.R. Boutique partnership.

Assumption: The problem states "Accounts Payable Rs.970,000". If this value is used, Maheen's capital would be Rs.30,000, which would lead to Raheen needing to withdraw cash to equalize capital, which is not typical for an initial contribution. Therefore, it is assumed that "Accounts Payable Rs.970,000" is a typographical error and should be Rs.70,000. This assumption allows for a logical calculation of Raheen's cash contribution.

Step 1: Calculate Maheen's Capital Contribution.
Maheen transfers assets (except prepaid rent)