Sanjana and Alok were partners in a firm sharing profits and losses in the ratio 3:2.
On 31st March, 2018 their Balance Sheet was as follows:
Balance Sheet of Sanjana and Alok as on 31-3-2018
| Liabilities | Amount (Rs. ) | Assets | Amount (Rs. ) |
| Creditors | 60,000 | Cash | 1,66,000 |
| Workmen’s Compensation Fund | 60,000 | Debtors 1,46,000 | |
Less: Provision for doubtful debts (2,000) | 1,44,000 | ||
| Capitals : | Stock | 1,50,000 | |
| Sanjana 5,00,000 | Investments | 2,60,000 | |
| Alok 4,00,000 | 9,00,000 | Furniture | 3,00,000 |
| Total | 10,20,000 | Total | 10,20,000 |
On 1st April, 2018, they admitted Nidhi as a new partner for 1/4th share in the profits on the following terms:
(a) Goodwill of the firm was valued at Rs. 4,00,000 and Nidhi brought the necessary amount in cash for her share of goodwill premium, half of which was withdrawn by the old partners.
(b) Stock was to be increased by 20% and furniture was to be reduced to 90%.
(c) Investments were to be valued at Rs. 3,00,000. Alok took over investments at this value.
(d) Nidhi brought Rs. 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the new profit sharing ratio.
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm on Nidhi’s admission.
Marks-8, CBSE:2018-19/Main/01/Q-17*
