X and Y were partners in the profit-sharing ratio of 3 : 2. Their balance sheet as at March 31, 2022 was as follows:
X and Y were partners in the profit-sharing ratio of 3 : 2. Their balance sheet as at March 31, 2022 was as follows:
Balance Sheet as at March 31, 2022
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 56,000 | Plant and Machinery | 70,000 |
| General Reserve | 14,000 | Buildings | 98,000 |
|
Capital Accounts: X 1,19,000 Y 1,12,000 |
2,31,000 | Stock | 21,000 |
| Â | Â |
Debtors (-) Provision |
35,000 |
| Â | Â | Cash in Hand | 77,000 |
| Â | 3,01,000 | Â | 3,01,000 |
Z was admitted for 1/6th share on the following terms:
(i) Z will bring ₹ 56,000 as his share of capital, but was not able to bring any amount to compensate the sacrificing partners.
(ii) Goodwill of the firm is valued at ₹ 84,000.
(iii) Plant and Machinery were found to be undervalued by ₹ 14,000. Building was to brought up to ₹ 1,09,000.
(iv) All debtors are goods.
(v) Capitals of X and Y will be adjusted on the basis of Z’s share and adjustments will be done by opening necessary current accounts.
You are requied to prepare revaluation account and Partner’s Capital Accounts.
[Ans. Gain on Revaluation ₹ 32,000; Capital Accounts X ₹ 1,68,000; Y ₹ 1,12,000 and Z ₹ 56,000; X’s Current A/c Dr. ₹ 13,000; Y’s Current A/c Cr. ₹ 24,000.]
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