A and B were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2018, was as follows:
A and B were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2018, was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Capitals:
A B Creditors Employee’s Provident Fund Workmen Compensation Reserve Contingency Reserve |
1,04,000 52,000 1,54,000 16,000 10,000 10,000 |
Cash
Sundry Debtors Stock Prepaid Insurance Plant and Machinery Building Furniture |
37,600
|
8,000 36,000 60,000 6,000 76,000 1,40,000 20,000 |
| 3,46,000 | 3,46,000 |
C was admitted as a new partner and brought ₹ 64,000 as capital and ₹ 15,000 for his share of goodwill premium. The new profit sharing ratio was 5 : 3 : 2. On C’s admission the following was agreed upon:
i) Stock was to be depreciated by 5%.
ii) Provision for doubtful debts was to be made at ₹ 2,000.
iii) Furniture was to be depreciated by 10%
iv) Building was valued at ₹ 1,60,000.
v) Capitals of A and B were to be adjusted on the basis of C’s Capital by bringing or paying in cash as the case may be:
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of reconstituted firm.
[Ans: Gain (Profit) on Revaluation = ₹ 14,600; Capital Accounts: A – ₹ 1,60,000; B – ₹ 96,000; C – ₹ 64,000; A bring bring cash of ₹ 27,740; B will bring ₹ 22,600; Cash Balance = ₹ 1,37,400; Balance Sheet Total – ₹ 4,90,000.]
Anurag Pathak Changed status to publish May 29, 2023
