Amrit, Ajit and Ansh are partners sharing profits and losses in the ratio of 1/2, 1/3, and 1/6 respectively
Amrit, Ajit and Ansh are partners sharing profits and losses in the ratio of 1/2, 1/3, and 1/6 respectively. The firm’s Balance Sheet as at 31st March 2023 was as follows:
| Liabilities | ₹ | Assets |  | ₹ |
|
Sundry Creditors Bills Payable General Reserve Capital A/cs: Amrit Ajit Ansh |
19,000 5,000 12,000 40,000 30,000 25,000 |
Cash at Bank Debtors Less: Provision for Doubtful Debts Stock Motor Vans Plant and Machinery Factory Building |
16,000 500 |
2,500 15,500 25,000 8,000 35,000 45,000 |
| Â | 1,31,000 | Â | Â | 1,31,000 |
Ajit retires on 1st April, 2023, subject to the following adjustments:
(i) Goodwill of the firm to be valued at ₹ 18,000.
(ii) Plant and Machinery to be reduced by 10% and Motor Vans by 15%.
(iii) Stock to be appreciated by 20% and Building by 10%.
(iv) Provision for Doubtful Debts to be increased by ₹ 1,950.
(v) That out of the fire insurance premium paid during the year, ₹ 2,500 be carried forward as unexpired.
(vi) that a provision of ₹ 2,500 be made in respect of outstanding bill for repairs.
Prepare Revaluation Account and Ajit’s Capital Account. 
Anurag Pathak Changed status to publish March 3, 2024
