Ashok, Bhaskar and Chaman are partners in a firm, sharing profits and losses as Ashok 1/3, Bhaskar 1/2, and Chaman 1/6 respectively. The Balance sheet of the firm as at 31st March, 2023 was:
Ashok, Bhaskar and Chaman are partners in a firm, sharing profits and losses as Ashok 1/3, Bhaskar 1/2, and Chaman 1/6 respectively. The Balance sheet of the firm as at 31st March, 2023 was:
| Liabilities | ₹ | Assets | ₹ | |
| Capital A/cs:
Ashok Bhaskar Chaman General Reserve Sundry Creditors Loan Payable |
3,00,000 4,00,000 2,50,000 2,20,000 2,50,000 1,50,000 |
Building
Plant and Machinery Furniture Stock Debtors Cash in Hand Advertisement Suspense Account |
1,80,000 |
5,00,000 4,00,000 1,00,000 2,50,000 1,75,000 85,000 60,000 |
| 15,70,000 | 15,70,000 |
Chaman retired on 1st April, 2023 subject to the following adjustments:
a) Goodwill of the firm be valued at ₹ 2,40,000. Chaman’s share of goodwill be adjusted into the capital accounts of Ashok and Bhaskar who will share future profits in the ratio of 3 : 2.
b) Plant and Machinery to be reduced by 10% and Furniture by 5%.
c) Stock to be increased by 15% and Building by 10%.
d) Provision for doubtful Debts to be raised to ₹ 20,000.
Prepare Revaluation Account, Capital Account of Chaman and the Balance Sheet of the firm after Chaman’s retirement.
Anurag Pathak Changed status to publish June 22, 2023
