Balance Sheet of Manoj, Navin and Deep who were sharing the results in proportion to their capitals as at 31st March, 2023 is as under:
Balance Sheet of Manoj, Navin and Deep who were sharing the results in proportion to their capitals as at 31st March, 2023 is as under:
| Liabilities | ₹ | Assets |  | ₹ |
|
Bills Payable Sundry Creditors Capital A/cs: Manoj Navin Deep |
10,000 24,500 1,00,000 75,000 50,000 |
Bank Balance Debtors Less: PDD Stock Plant and Machinery Factory Building |
25,000 500 |
27,500 24,500 40,000 42,500 1,25,000 |
| Â | 2,59,500 | Â | Â | 2,59,500 |
Navin retired on 1st April, 2023 and the following adjustments were made:
(i) Stock was reduced by 6%.
(ii) Factory Building was appreciated by 20%.
(iii) Provision for Doubtful Debts was created up to 5%.
(iv) Provision for legal charges to be made ₹ 3,850.
(v) Goodwill of the firm be fixed at ₹ 54,000.
(vi) Capital of the new firm be fixed at ₹ 1,40,000 in the profit and loss sharing ratio.
Prepare Revaluation Account, Capital Accounts and Balance Sheet of Manoj and Deep after transferring Navin’s Capital Account to his Loan Account.
Anurag Pathak Changed status to publish March 3, 2024
