Rohit and Bal sharing profits in the ratio of 5 : 3 has the following Balance Sheet as at March 31, 2022:
Rohit and Bal sharing profits in the ratio of 5 : 3 has the following Balance Sheet as at March 31, 2022:
Balance Sheet
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 1,00,000 | Goodwill | 1,50,000 |
| Bills Payable | 40,000 | Building | 1,70,000 |
| General Reserve | 1,40,000 | Plant | 1,35,000 |
|
Capital Accounts: Rohit Bal |
4,00,000 2,00,000 |
Furniture | 20,000 |
| Â | Â | Debtors | 1,65,000 |
| Â | Â | Bills Receivables | 75,000 |
| Â | Â | Stock | 1,10,000 |
| Â | Â | Bank | 55,000 |
| Â | 8,80,000 | Â | 8,80,000 |
On April 1st, 2022, they decided to admit Khosla into the partnership giving him 1/5th share. He brings in ₹ 2,50,000 as his share of capital. The partners decide to revalue the Assets as follows:
Goodwill ₹ 2,50,000; Plant ₹ 1,25,000; Debtors ₹ 1,55,000; Stock ₹ 1,62,500; Building ₹ 2,00,000; Furniture ₹ 10,000; Bills Receivable ₹ 62,500.
You are required to show the journal entries and prepare the Revaluation A/c.
[Ans. Gain on Revaluation ₹ 40,000.]
Anurag Pathak Answered question
