1.

​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, 2015 was as follows: Liabilities Amount (₹) Assets Amount ​(₹) Creditors 50,000 Land 50,000 Bills Payable 20,000 Building 50,000 General Reserve 30,000 Plant 1,00,000 Capital A/cs: Stock 40,000 A 1,00,000 Debtors 30,000 B 50,000 Bank 5,000 C 25,000 1,75,000 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 ₹ 1,50,000.(ii) Land will be revalued at ₹ 80,000 and building be depreciated by 6%.(iii) Creditors of ₹ 6,000 were not likely to be claimed and hence should be written off.Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm.

Answer» ​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, 2015 was as follows:







































































Liabilities
Amount


(₹)

Assets
Amount


​(₹)

Creditors 50,000 Land 50,000
Bills Payable 20,000 Building 50,000
General Reserve 30,000 Plant 1,00,000
Capital A/cs: Stock 40,000
A 1,00,000 Debtors 30,000
B 50,000 Bank 5,000
C 25,000 1,75,000
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 ₹ 1,50,000.

(ii) Land will be revalued at ₹ 80,000 and building be depreciated by 6%.

(iii) Creditors of ₹ 6,000 were not likely to be claimed and hence should be written off.

Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm.


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