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Sunil, Nitish and Sapna were partners in a trading firm, sharing profits and losses equally. On 31st March, 2023, the Balance Sheet of the firm stood as follows:

Liabilities Assets

Creditors

General Reserve

Bank Loan

Capital A/cs:

Sunil

Nitish

Sapna

1,35,000

1,20,000

50,000

 

1,50,000

1,00,000

80,000

Cash at Bank

Debtors

Stock

Building

Goodwill

59,000

80,000

1,16,000

2,30,000

1,50,000

  6,35,000   6,35,000

On 1st July, 2023, Sapna retires and the following conditions were agreed upon:

(a) The value of Building should be appreciated by ₹ 70,000.

(b) Create Provision @ 5% on debtors for doubtful debts.

(c) Goodwill of the firm was valued at ₹ 1,80,000.

(d) Sapna’s share of profits up to the date of retirement be calculated on the basis of last year’s profit. The profit earned in the previous year was ₹ 6,00,000.

Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet after retirement of Sapna.

Anurag Pathak Changed status to publish March 3, 2024
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