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Raman and Rohit were partners in a firm sharing profits and losses in the ratio 0f 2 : 1. On 31st March, 2018, their Balance Sheet was as follows:

Liabilities Assets
Capitals:

Raman

Rohit

Workmen Compensation Fund

Creditors

 

1,40,000

1,00,000

40,000

1,60,000

Plant and Machinery

Furniture and Fixtures

stock

Debtors
Less: Provision for Doubtful Debts

Bank Balance

 

 

 

1,10,000
7,000

 

1,75,000

65,000

47,000

1,03,000

50,000

4,40,000  4,40,000

On the above date, Saloni was admitted in the partnership firm. Raman surrendered 2//5th of his share and Rohit surrendered 1/5th of his share in favour of saloni. It was agreed that:

i) Plant and machinery will be reduced by ₹ 35,000 and furniture and fixtures will be reduced to ₹ 58,500.

ii) Provision for bad and doubtful debts will be increased by ₹ 3,000.

iii) A claim for ₹ 16,000 for workmen’s Compensation was admitted.

iv) A liability of ₹ 2,500 included in creditors is not likely to arise.

v) Saloni will bring ₹ 42,000 as her share of goodwill premium and proportionate capital.

Prepare Revaluation Account, partner’s Capital Accounts and Balance Sheet of the reconstituted firm.

[Ans: Loss on Revaluation = ₹ 42,000; Partner’s Capital Accounts: Raman – ₹ 1,61,600; Rohit – ₹ 1,02,400; Saloni – ₹ 1,32,000; Balance Sheet total – ₹ 5,69,500.]

Anurag Pathak Changed status to publish May 29, 2023
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