X and Y were partners in a firm sharing profits in the ratio of 3 : 2.

1.	X and Y were partners in a firm sharing profits in the ratio of 3 : 2. On 31st March, 2018 their balancesheet was as follows:Balance Sheet Liabilities Amount Assets Amount` `Sundry Creditors 50,000 Cash 10,000Bills Payable 20,000 Debtors 40,000Outstanding Exp. 10,000 Stock 1,00,000Capital Accounts : Machinery 80,000X 1,80,000 Land and Building 1,00,000Y 70,0003,30,000 3,30,000On the above date Z was admitted as a new partner in the firm for ¼th share in the profits on the following terms :(a) Z will bring Rs.1,20,000 for his capital and Rs.20,000 as his share of premium for goodwill.(b) Machinery was depreciated by 10%.(c) Land and building was appreciated by Rs.30,000.(d) Stock is overvalued by Rs.20,000.(e) A provision for 5% was to be created for doubtful debts.(f) Salary outstanding was Rs.5,000.Prepare Revaluation Account.
Answer» X and Y were PARTNERS in a firm sharing profits in the RATIO of 3 : 2. On 31st MARCH, 2018 their balance sheet was as follows: Balance Sheet Liabilities Amount Assets Amount ` ` Sundry Creditors 50,000 Cash 10,000 Bills PAYABLE 20,000 Debtors 40,000 Outstanding Exp. 10,000 Stock 1,00,000 Capital Accounts : MACHINERY 80,000 X 1,80,000 Land and Building 1,00,000 Y 70,000 3,30,000 3,30,000 On the above date Z was admitted as a new partner in the firm for ¼th share in the Prepare Revaluation Account.

X and Y were partners in a firm sharing profits in the ratio of 3 : 2. On 31st March, 2018 their balancesheet was as follows:Balance Sheet Liabilities Amount Assets Amount` `Sundry Creditors 50,000 Cash 10,000Bills Payable 20,000 Debtors 40,000Outstanding Exp. 10,000 Stock 1,00,000Capital Accounts : Machinery 80,000X 1,80,000 Land and Building 1,00,000Y 70,0003,30,000 3,30,000On the above date Z was admitted as a new partner in the firm for ¼th share in the profits on the following terms :(a) Z will bring Rs.1,20,000 for his capital and Rs.20,000 as his share of premium for goodwill.(b) Machinery was depreciated by 10%.(c) Land and building was appreciated by Rs.30,000.(d) Stock is overvalued by Rs.20,000.(e) A provision for 5% was to be created for doubtful debts.(f) Salary outstanding was Rs.5,000.Prepare Revaluation Account.

Answer»

X and Y were PARTNERS in a firm sharing profits in the RATIO of 3 : 2. On 31st MARCH, 2018 their balance

sheet was as follows:

Balance Sheet

Liabilities Amount Assets Amount

` `

Sundry Creditors 50,000 Cash 10,000

Bills PAYABLE 20,000 Debtors 40,000

Outstanding Exp. 10,000 Stock 1,00,000

Capital Accounts : MACHINERY 80,000

X 1,80,000 Land and Building 1,00,000

Y 70,000

3,30,000 3,30,000

On the above date Z was admitted as a new partner in the firm for ¼th share in the

Prepare Revaluation Account.