Balance Sheet of Payal, Akeel and Ramesh as at 31st March, 2023 was as follows:
Balance Sheet of Payal, Akeel and Ramesh as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets |  | ₹ |
|
Creditors Investments Fluctuation Reserve Workmen Compensation Reserve Profit and Loss A/c Capital A/cs: Payal Akeel Ramesh |
2,00,000 2,000 18,000 3,000 51,000 40,000 40,000 |
Balance at Bank Debtors Less: PDD Stock Machinery Investments Building Goodwill |
30,000 1,600 |
1,60,000 28,400 4,000 29,000 30,000 1,00,000 3,000 |
| Â | 3,54,400 | Â | Â | 3,54,400 |
Ramesh retired on 1st April, 2023 and following adjustments were agreed upon:
(i) Building is to be appreciated by 10%.
(ii) All the Debtors were good.
(iii) Investments be valued 10% less than the book value
(iv) Stock be reduced to 93%.
(v) Goodwill be valued at one year’s purchase of the average profit of the past three years. Profits of the years ended 31st March, 2021 and 31st March, 2022 were ₹ 8,000 and ₹ 7,000 respectively.
(vi) Ramesh shall be paid ₹ 23,440 immediately and the balance in two equal yearly instalments together with interest @ 8% p.a.
(vii) New Ratio of Payal and Akeel would be 2 : 1.
Prepare Revaluation Account, Partner’s Capital Accounts, Ramesh’s Loan Account (till it is paid) and the Balance Sheet as at 1st April, 2023. 
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