On 31st March, 2022 the Balance Sheet of partners A and B, who were sharing profits in the ratio of 3 : 2 was as follows:
Balance Sheet of A and B as at 31st March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 30,000 | Cash at Bank | 20,000 |
| Investment Fluctuation Fund | 12,000 | Debtors 85,000 | |
| General Reserve | 25,000 | Less: Provision 5,000 | 80,000 |
| Capitals: | Stock | 1,30,000 | |
| A 1,60,000 | Investments | 60,000 | |
| B 1,40,000 | 3,00,000 | Furniture | 77,000 |
| 3,67,000 | 3,67,000 |
On 1st April 2022, they decided to admit C as a new partner for 1/5th share in the profits on the following terms:
(i) C brought ₹1,00,000 as his Capital and ₹50,000 as his share of Premium for Goodwill.
(ii) One-month salary ₹2,000 was outstanding.
(iii) The market value of investments was ₹50,000.
(iv) A debtor, whose dues were written off as bad debts, paid ₹12,000 in full settlement.
Prepare Revaluation Account and Partners Capital Accounts.
Marks-6, CBSE:2022-23/Zone-3/Set-1/Q-24*
Answer :