Suraj, Pawan and Kamal are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2023 is:
Suraj, Pawan and Kamal are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2023 is:
| Liabilities | ₹ | Assets | ₹ | |
| Creditors
General Reserve Capital A/cs: Suraj Pawan kamal |
46,000 12,000 40,000 40,000 30,000 |
Cash in Hand
Debtors Stock Furniture Machinery Goodwill |
25,000
|
18,000 22,000 18,000 30,000 70,000 10,000 |
| 1,68,000 | 1,68,000 |
Pawan retired on 1st April, 2023 on the following terms:
a) Provision for Doubtful Debts be raised by ₹ 1,000.
b) Stock to be reduced by 10% and Furniture by 5%.
c) There is an outstanding claim of damages of ₹ 1,100 and it is to be provided for.
d) Creditors will be written back by ₹ 6,000.
e) Goodwill of the firm is valued at ₹ 22,000.
f) Pawan is paid in full with the cash brought in by Suraj and Kamal in such a manner that their capitals are in proportion to their profit sharing ratio and Cash in Hand remains at ₹ 10,000.
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of Suraj and Kamal.
Anurag Pathak Changed status to publish June 24, 2023
How creditors are valued 24000 in balance sheet. Why it isn’t 40000.