Rita Geeta and Ashish were partners sharing profits and losses equally. Their Balance Sheet as at 31st March, 2023 is given below:
Rita Geeta and Ashish were partners sharing profits and losses equally. Their Balance Sheet as at 31st March, 2023 is given below:
| Liabilities | ₹ | Assets |  | ₹ |
|
Capital A/cs: Rita Geeta Ashish General Reserve Creditors |
50,000 50,000 50,000 15,000 500 |
Machinery Furniture Bills Receivable Stock Debtors Less: PDD Cash at Bank |
45,000 3,000 |
50,000 28,000 21,000 9,500
42,000 15,000 |
| Â | 1,65,500 | Â | Â | 165,500 |
Ashish died on 1st April 2023 and the following agreement was to be put into effect:
(i) Assets were to be revalued: Machinery to ₹ 56,500; Furniture to ₹ 25,000; Stock to ₹ 7,500.
(ii) Goodwill of the firm was to be valued at two year’s purchase of average profit for the last three years which was ₹ 22,500.
(iii) ₹ 10,000 were to be paid to the executor of the deceased partner on 1st April, 2023.
You are required to prepare:
(a) Revaluation Account, (b) Capital Accounts of the partners, and (c) Balance Sheet of the new firm.
Anurag Pathak Changed status to publish February 13, 2024
