Chandan, Deepak and Elvish were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows:
Balance Sheet of Chandan, Deepak and Elvish as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
|---|---|---|---|---|---|
| Capitals: | Fixed Assets | 27,00,000 | |||
| Chandan | 7,00,000 | Stock | 3,00,000 | ||
| Deepak | 5,00,000 | Debtors | 2,00,000 | ||
| Elvish | 3,00,000 | 15,00,000 | Cash | 1,00,000 | |
| General Reserve | 4,50,000 | ||||
| Creditors | 13,50,000 | ||||
| Total | 33,00,000 | Total | 33,00,000 | ||
Chandan retired from the firm on 1st April, 2024 on the following terms :
Fixed assets were to be depreciated by 10%.
Debtors of ₹30,000 were to be written off as bad debts.
Goodwill of the firm was valued at ₹6,00,000 and the retiring partner’s share is adjusted through the capital accounts of the remaining partners.
Chandan was paid through cash brought in by Deepak and Elvish in such a way so as to make their capitals proportionate to their new profit sharing ratio.
Prepare Revaluation Account and Partners’ Capital Accounts.
Marks-6, CBSE: 2024-25/Zone-4/Set-1/Q-26(b)
Answer :
