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Rita Geeta and Ashish were partners sharing profits and losses equally. Their Balance Sheet as at 31st March, 2023 is given below:

Liabilities Assets  

Capital A/cs:

Rita

Geeta

Ashish

General  Reserve

Creditors

 

50,000

50,000

50,000

15,000

500

Machinery

Furniture

Bills Receivable

Stock

Debtors

Less: PDD

Cash at Bank

 

 

 

 

45,000

3,000

50,000

28,000

21,000

9,500

 

42,000

15,000

  1,65,500     165,500

Ashish died on 1st April 2023 and the following agreement was to be put into effect:

(i) Assets were to be revalued: Machinery to ₹ 56,500; Furniture to ₹ 25,000; Stock to ₹ 7,500.

(ii) Goodwill of the firm was to be valued at two year’s purchase of average profit for the last three years which was ₹ 22,500.

(iii) ₹ 10,000 were to be paid to the executor of the deceased partner on 1st April, 2023.

You are required to prepare:

(a) Revaluation Account, (b) Capital Accounts of the partners, and (c) Balance Sheet of the new firm.

Anurag Pathak Changed status to publish February 13, 2024
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