A,B and C were partners in a firm sharing profits in the ratio of 3:2:1. Their Balance Sheet as on
31st March,2020 was as follows:
Liabilities Amount Assets Amount
Creditors
Bills Payable
General Reserve
Capital Accounts
A
B
C
50,000
20,000
30,000
1,00,000
50,000
25,000
Land
Building
Plant
Stock
Debtors
Bank
50,000
50,000
1,00,000
40,000
30,000
5,000
2,75,000 2,75,000
From 1st April 2015, A,B and C decided to share profits equally. For this it was agreed that:
(i) Goodwill of the firm will be valued at Rs.1,50,000
(ii) Land will be revalued at Rs.80,000 and Building be depreciated by 6%
(iii) Creditors of Rs.6,000 were not likely to be claimed and hence should be written off.
Prepare Revaluation Account, Partner’s Capital Account and BalanceSheet of the reconstituted firm
Answers
Answer:
#INNOCENTDEVIL☠
Explanation:
Revaluation A/c
Particulars (Dr.) Amount Particulars (Cr.) Amount
To Building a/c
To profit on revaluation
A's capital a/c 16,500
B's capital a/c 11,000
C's capital a/c 5,500 3,000
33,000 By Land a/c
By creditors a/c 30,000
6,000
Partners' Capital a/c
Particulars (Dr.) A B C Particulars (Cr.) A B C
To A's capital a/c
To balance c/d
1,56,500
71,000 25,000
10,500 By balance b/d
By General reserve a/c
By Revaluation a/c
By C's capital a/c 1,00,000
15,000
16,500
25,000 50,000
10,000
11,000 25,000
5,000
5,500
Balance Sheet of A, B & C
Liabilities Amount Assets Amount
Capital
A 1,56,500
B 71,000
C 10,500
Creditors
Bills Payable 2,38,000
44,000
20,000 Land
Building
Plant
Stock
Debtors
Bank 80,000
47,000
1,00,000
40,000
30,000
5,00