The Balance Sheet of Asha, Deepa and Lata who were sharing profits in the ratio of 5 : 3 : 2 as at 31st March, 2023 is as follows:
The Balance Sheet of Asha, Deepa and Lata who were sharing profits in the ratio of 5 : 3 : 2 as at 31st March, 2023 is as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors
Employee’s Provident Fund Profit & Loss A/c Capital A/cs: Asha Deepa Lata |
50,000
10,000 85,000 40,000 62,000 33,000 |
Cash at Bank
Sundry Debtors Stock Fixed Assets |
40,000
1,00,000 80,000 60,000 |
| 2,80,000 | 2,80,000 |
Asha retired on 1st April, 2023 and Deepa and Lata decided to share profits in future in the ratio of 3 : 2 respectively.
The other terms on retirement were:
a) Goodwill of the firm is to be valued at ₹ 80,000.
b) Fixed Assets are to be depreciated to ₹ 57,500.
c) Make a provision for Doubtful Debts at 5% on Debtors
d) A liability for claim, included in Creditors for ₹ 10,000, is settled at ₹ 8,000.
The amount to be paid to Asha by Deepa and Lata in such a way that their capitals are proportionate to their profit sharing ratio and leave a balance of ₹ 15,000 in the Bank Account.
Prepare Revaluation Account and Partner’s Capital Accounts
Anurag Pathak Changed status to publish June 24, 2023
