Atharv and Anmol were partners in a firm sharing profits and losses in the ratio of 5 : 2. Their Balance Sheet as at 31st March, 2024 was as follows :
Balance Sheet of Atharv and Anmol as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
|---|---|---|---|---|---|
| Capitals: | Fixed Assets | 14,00,000 | |||
| Atharv | 8,00,000 | Stock | 4,90,000 | ||
| Anmol | 4,00,000 | 12,00,000 | Debtors | 5,60,000 | |
| General Reserve | 3,50,000 | Cash | 10,000 | ||
| Creditors | 9,10,000 | ||||
| Total | 24,60,000 | Total | 24,60,000 | ||
On 1st April, 2024, Surya was admitted as a new partner for 2/7th share in the profits of the firm on the following terms :
- The new profit sharing ratio between Atharv, Anmol and Surya will be 4:1:2.
- Fixed Assets were to be reduced by 10%.
- Stock was sold at ₹4,20,000.
- Surya shall bring ₹3,00,000 as capital and ₹2,00,000 for his share of goodwill premium in cash.
- Capital accounts of old partners be adjusted on the basis of Surya’s Capital in the business, actual cash to be paid off to, or brought in by the old partners, as the case may be.
Prepare Revaluation Account and Partners’ Capital Accounts
Marks-6, CBSE: 2024-25/Zone-4/Set-1/Q-26(a)
Answer :
