X and Y were partners in the profit-sharing ratio of 3: 2. Their balance sheet as at March 31, 2022 was as follows:
Balance Sheet as at March 31, 2022
Liabilities | Amount ₹ |
Assets | Amount ₹ |
---|---|---|---|
Creditors | 56,000 | Plant and Machinery | 70,000 |
General Reserve | 14,000 | Buildings | 98,000 |
Capitals: | Stock | 21,000 | |
X 1,19,000 | Debtors 42,000 | ||
Y 1,12,000 | 2,31,000 | (-) Provision 7,000 | 35,000 |
Cash in hand | 77,000 | ||
3,01,000 | 3,01,000 |
Z was admitted for 1/6th share on the following terms:
- Z will bring ₹56,000 as his share of capital, but was not able to bring any amount to compensate the sacrificing partners.
- Goodwill of the firm is valued at ₹84,000.
- Plant and Machinery were found to be undervalued by ₹14,000 Building was to brought up to ₹1,09,000.
- All debtors are good.
- Capitals of X and Y will be adjusted on the basis of Z’s share and adjustments will be done by opening necessary current accounts.
You are required to prepare revaluation account and partners’ capital account.
Marks-6, CBSE:2022-23/Sample/Q-24*
Answer :