X and Y were partners in the profit-sharing ratio of 3 : 2. Their Balance Sheet as at 31st March, 2022 was as follows:
X and Y were partners in the profit-sharing ratio of 3 : 2. Their Balance Sheet as at 31st March, 2022 was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Creditors
General Reserve Capital A/cs: X Y |
56,000
14,000
1,19,000 1,12,000 |
Plant and Machinery
Buildings Stock Debtors Cash in Hand |
42,000
|
70,000
98,000 21,000 35,000 77,000 |
| 3,01,000 | 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 good.
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 required to prepare Revaluation Account and Partners capital accounts.
[Ans: Gain on Revaluation – ₹ 32,000; Parnter’s Capital Accounts: X – ₹ 1,68,000; Y – ₹ 1,12,000; Z – ₹ 56,000; X’s Current A/c (Dr.) – ₹ 13,000; Y’s Current A/c (Cr.) ₹ 24,000.]
Anurag Pathak Changed status to publish May 28, 2023
It is the balancing figure of the capital’s account of paratners.
It is the balancing figure of the capital’s account of partners.
How did current account calculated