Qadir and Rishab are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2016 is given below :

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)
Qadir’s Capital11,40,000Land & Building5,60,000
Rishab’s Capital7,00,000Plant & Machinery6,00,000
Workmen’s Compensation Reserve60,000Stock1,60,000
Creditors1,00,000Debtors                    6,00,000 
  Less Provision          (20,000)5,80,000

Qadir and Rishab decided to admit Sapna as a new partner from 1st April, 2016. Their new profit sharing ratio was 3 : 2 : 5. Sapna brought in Rs.  6,00,000 as her capital and her share of goodwill premium in cash.

(a) Sapna’s share of goodwill premium was valued at Rs.  30,000.

(b) Plant and Machinery be valued at 125%.

(c) Creditors were unrecorded to the extent of Rs.  30,000.

(d) Claim on account of workmen compensation was Rs.  40,000.

Prepare Revaluation A/c., Partners’ Capital Accounts and the  Balance Sheet of the reconstituted firm.

Marks-8, CBSE:2016-17/Comp-AI/Q-17*

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