Lisa, Monika and Nisha were partners in a firm sharing profits & Losses in the ratio of 5 : 3 : 2. On 31st March 2023, their Balance Sheet was as follows:
Lisa, Monika and Nisha were partners in a firm sharing profits & Losses in the ratio of 5 : 3 : 2. On 31st March 2023, their Balance Sheet was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors
Employee’s Provident Fund Capital A/cs: Lisa Monika Nisha |
50,000 10,000 1,07,500 1,02,500 60,000 |
Cash at Bank
Sundry Debtors Stock Fixed Assets Goodwill |
40,000 1,00,000 80,000 60,000 50,000 |
| 3,30,000 | 3,30,000 |
Lisa retired on 1st April 2023 on the following terms:
i) Goodwill of the firm is to be valued at ₹ 80,000 and Lisa’s share of the same be adjusted to that of Monika and Nisha who are going to share the future profits in the ratio of 2 : 3.
ii) Fixed Assets are to be decreased to ₹ 57,500.
iii) Make Provision for Doubtful Debts at 5% on Debtors
iv) A claim included in creditors for ₹ 10,000 is settled at ₹ 8,000.
v) The amount to be paid to Lisa by Monika and Nisha in such a way that their capitals are proportionate to their profit sharing ratio and leave a balance of ₹ 15,000 in the Bank Account.
You are required to prepare:
a) Revaluation Account; and
b) Partner’s Capital Accounts
Anurag Pathak Changed status to publish July 11, 2023
