A and B were partners in a firm sharing profits and losses in the ratio of 3: 1. On 31.03.2022, their Balance Sheet was as follows:
Balance Sheet of A and B as at 31st March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Outstanding Expenses | 3,000 | Bank | 40,000 |
| Bills Payable | 20,000 | Stock | 60,000 |
| Sundry Creditors | 1,40,000 | Bills Receivables | 70,000 |
| General Reserve | 80,000 | Debtors 1,00,000 | |
| Capitals: | Less: Provision for Doubtful debts 5,000 |
95,000 |
|
| A 2,00,000 | Furniture | 85,000 | |
| B 3,00,000 | 5,00,000 | Machinery | 1,10,000 |
| Land and Building | 2,83,000 | ||
| 7,43,000 | 7,43,000 |
On the above date, C was admitted as a new partner for 1/5th share in the profits on the following terms:
- C will bring ₹2,00,000 as her capital and ₹1,60,000 as her share of goodwill premium.
- Stock will be appreciated by ₹1,500.
- Debtors of ₹5,000 will be written off as bad debts and a provision of 10% for bad and doubtful debts will be maintained.
Prepare Revaluation Account and Partners’ Capital Accounts.
Marks-6, CBSE:2022-23/Compartment/Q-26*
Answer :