Sarah and Varsha were partners in a firm sharing profits and losses in the ratio of 3:2. Their
Balance Sheet as at 31st March, 2023 was as follows:
Balance Sheet of Sarah and Varsha as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | ||
|---|---|---|---|---|---|
| Capitals: Sarah Varsha Workmen’s Compensation Fund Provident Fund Creditors |
60,000 50,000 |
1,10,000 20,000 1,20,000 50,000 |
Plant and Machinery Stock Debtors Less: provision for doubtful debts Cash |
50,000 5,000 |
2,00,000 30,000 45,000 25,000 |
| Total | 3,00,000 | Total | 3,00,000 | ||
On 1st April, 2023, they decided to admit Tasha as a new partner for 14 th share in the profits of the firm on the following terms:
- Tasha brought Rs. 40,000 as her capital and Rs. 20,000 as her share of premium for goodwill.
- Plant and Machinery was valued at Rs.1,90,000.
- An item of Rs. 20,000, included in creditors, is not likely to be claimed and should be written off.
- Capitals of the partners in the new firm are to be in the new profit-sharing ratio on the basis of Tasha’s capital, by bringing or paying off cash, as the case may be.
Prepare Revaluation Account and Partners’ Capital Accounts.
Marks-6, CBSE: 2023-24/Zone-3/Set-1/Q-26
Answer :
