Question

27. A, B and Care partners in a firm sharing profits and losses in the ratio of
5:3:2. On 31st March, 2014, their Balance Sheet was as follows:
Assets
Liabilities
4,000
20,000
1,000
Creditors
Bills Payable
Capital
A
B
40,000 Cash in hand
20,000 Debtors
Less : Provision
50,000
Stock
30,000
Machinery
20,000 1,00,000 Furniture
10,000 Building
1,70,000
19.000
20,000
40.000
*7,000
80,000
1,90.000
Profit & Loss A/C
C retired on that date and following adjustments were agreed upon:
(1) Increase the value of stock by 4,000.
(ii) Depreciate machinery by 5,000 but building is valued at 90,000
Gui) Reserve on Debtors is not required.
(iv) Goodwill is valued at 20,000.
Prepare Revaluation Account and Capital A/c of partners.
(Ans. Profit on Revaluation 10,000 (5:3:2), C's Loan 28,000.
Capitals A57,500, B 34,500)​

Answer 1

Answer:

Goodwill is valued at 20,000.

Prepare Revaluation Account and Capital A/c of partners.