Gautam and Yashica are partners in a firm, sharing profits and losses in 3:1 respectively. The balance sheet of the firm as on 31st March 2018 was as follows:

Balance Sheet

As at 31.3.2018


Amount (Rs.)


Amount (Rs.)
Sundry creditors50,000Furniture60,000
Bills payable30,000Stock1,40,000
Capitals Debtors80,000
     Gautam      4,00,000 Cash in hand90,000
     Yashica       1,00,0005,00,000Machinery2,10,000
 Total5,80,000  Total5,80,000

Asma is admitted as a partner for 3/8th share in the profits with a capital of ₹2,10,000 and ₹50,000 for her share of goodwill. It was decided that:

  1. New profit sharing ratio will be 3:2:3
  2. Machinery will depreciated by 10% and Furniture by ₹5,000.

iii. Stock was re-valued at ₹ 2,10,000.

  1. Provision for doubtful debts is to be created at 10% of debtors.
  2. The capitals of all the partners were to be in the new profit sharing ratio on basis of capital of new partner any adjustment to be done through current accounts.

Prepare Revaluation Account, Partners Capital Account and the Balance Sheet of the new firm.

Marks 8, CBSE:2019-20/Sample/Q-21*

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