Bittu and Chintu were partners in a firm sharing profit and losses in the ratio of 4 : 3. Their Balance Sheet as at 31st March, 2024 was as follows:
Balance Sheet of Bittu and Chintu as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
|---|---|---|---|---|
| Capitals: | Fixed Assets | 15,40,000 | ||
| Bittu | 8,00,000 | Stock | 3,50,000 | |
| Chintu | 6,00,000 | 14,00,000 | Debtors | 1,40,000 |
| General Reserve | 2,10,000 | Bank | 70,000 | |
| Creditors | 4,90,000 | |||
| Total | 21,00,000 | Total | 21,00,000 | |
On 1st April, 2024, Diya was admitted in the firm for 1/7 share in the profits on the following terms:
- New profit sharing ratio between Bittu, Chintu and Diya will be 3:3:1
- Fixed Assets were found to be overvalued by ₹1,40,000.
- Creditors were paid ₹4,20,000 in full settlement.
- Diya brought proportionate capital and ₹5,60,000 as her share of goodwill premium by cheque.
Prepare Revaluation Account and Partners’ Capital Accounts.
Marks-6, CBSE: 2024-25/Zone-2/Set-1/Q-26(a)
Answer :
