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

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*

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