2. Badal and Bijli were partners in a firm sharing profits in the ratio of 3 : 2. Their Balance
Sheet as at 31st March, 2019 was as follows :
Balance Sheet of Badal and Bijli as at 31st March, 2019
Liabilities Amount Assets Amount
Capitals :
Badal 1,50,000
Bijli 90,000
Badal’s Current A/c
Investment Fluctuation Reserve
Bills Payable
Creditors
Work’s men Compensation Fund
2,40,000
12,000
24,000
8,000
26,000
30,000
Building
Investments
(book value Rs.45,000)
Stock
Debtors-22,000
-Prov. 2,000
Cash
Bijli’s Current A/c
Goodwill
Profit and Loss A/c
Advertisement Suspense A/c
1,50,000
73,000
25,000
20,000
22,000
2,000
24,000
18.000
6,000
3,40,000 3,40,000
Raina was admitted on the above date as a new partner for1/6th share in the profits of the
firm. The terms of agreement were as follows :
(i) Raina will bring Rs.40,000 as her capital and not bring Rs.12,000 in cash for her share of
goodwill premium.
(ii) Liability for WCF is Rs.24,000.
.(iii) The building was overvalued by Rs.15,000 and stock by Rs.3,000.
(iv) A provision of 10% was to be created on debtors for bad debts.
Prepare the Revaluation Account and Current and Capital Accounts of Badal, Bijli and
Raina.
Answers
Answer:
Explanation:
Revaluation A/c
To building 15000 By Loss transfer 20000
To Stock 3000 Badal 12000
To PF 2000 Bijli 8000
20000 20000
Capital A/c
Particulars bad Bij Rai Particulars Bad Bij Rai
To partner loss 30000 10000 --- By bal b/d 150000 90000 ---
To Bal c/d 120000 80000 40000 By Bal A/c --- --- 40000
150000 90000 40000 150000 90000 40000