Madhav and Girdhuri were partners in a firm sharing profits and Losses in the ratio of 3:1. Their balance sheet as at 31 March, 2022 was as follows
Balance sheet of Madhav and Girdhari as on 31 March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Capitals: | Machinery | 4,70,000 | |
| Madhav 3,00,000 | Investment | 1,10,000 | |
| Girdhari 2,00,000 | 5,00,000 | Debtors 1,20,000 | |
| Workmen’s Compensation Fund | 60,000 |
Less: Provision for Doubtful debts 10,000 |
1,10,000 |
| Creditors | 1,90,000 | Stock | 1,40,000 |
| Employee’s Provident Fund | 1,10,000 | Cash | 30,000 |
| 8,60,000 | 8,60,000 |
On 1st April, 2022, they admitted Jyoti into partnership for l/4th share in the profits of the firm. Jyoti brought ₹1,86,000 as her capital and ₹40,000 as her share of goodwill premium in cash. The following terms were agreed upon:
(i) Stock was found undervalued by ₹23,000,
(ii) 20% of the investments were taken over by Girdhari at book value.
(iii) Claim on account of workmen’s compensation amounted to ₹70,000, which was to be paid later.
(iv) Creditors included a sum of ₹27,000 which was not likely to be claimed.
Prepare Revaluation A/c and Partners’ Capital Accounts on Jyoti’s admission,
Marks-6, CBSE:2022-23/Zone-2/Set-1/Q-26*
Answer :