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:

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:

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.]