Varun, Jagdish and Tarun were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 Balance Sheet of the firm as at 31st March, 2023 was as follows:
Varun, Jagdish and Tarun were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 Balance Sheet of the firm as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets |  | ₹ |
|
Sundry Creditors Bills Payable Reserve Capital A/cs: Varun Jagdish Tarun |
25,000 12,000 15,000 40,000 40,000 30,000 |
Cash Sundry Debtors Less: PDD Closing Stock Furniture Plant and Machinery Building |
20,000 1,000 |
3,000 19,000 30,000 10,000 40,000 60,000 |
| Â | 1,62,000 | Â | Â | 1,62,000 |
On 1st April, 2023, Jagdish retired. The terms of retirement were following:
(i) Goodwill of the firm was to be valued at ₹ 20,000.
(ii) Furniture and Plant and Machinery were to be reduced by 10% and 5% respectively.
(iii) Stock and Building were to be appreciated by 20% and 10% respectively.
(iv) Provision for Doubtful Debts was to be increased to ₹ 1,500.
(v) Amount due to Jagdish was to be transferred to his Loan Account earning interest @ 10% p.a.
Show Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the firm after Jagdish’s retirement.
Anurag Pathak Changed status to publish March 3, 2024
