Yuv and Veer were partners in a firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet as on 31st March, 2022 was as under:
Balance Sheet of Yuv and Veer as at 31st March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 41,000 | Plant and Machinery | 60,000 |
| General Reserve | 80,000 | Building | 40,000 |
| Outstanding Expenses | 12,000 | Investments | 60,000 |
| Capitals: | Stock | 50,000 | |
| Yuv 79,000 | Debtors 38,000 | ||
| Veer 48,000 | 1,27,000 | Less: Provision for Doubtful Debts 4,000 |
34,000 |
| Cash | 16,000 | ||
| 2,60,000 | 2,60,000 |
They decided to admit Yash in the firm on 1st April, 2022 for 1/4th share in profits on the following terms:
(i) Yash will bring in proportionate capital and ₹4,000 as his share of goodwill premium in cash.
(ii) Investments were valued at ₹68,000.
(iii) Plant and Machinery was to be depreciated by 10%.
Prepare Revaluation Accounts and Partners Capital Accounts
Marks-6, CBSE:2022-23/Zone-1/Set-1/Q-24*
Answer :