Krish, Vrish and Peter are partners sharing profits in the ratio of 3:2:1. Vrish retired from the firm. On that date the Balance Sheet of the firm was as follows:
Balance Sheet as on March 31, 2020
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
||
|---|---|---|---|---|---|
| Creditors General Reserve Bills Payable Outstanding Salary Provision for Legal Damages Capitals: Krish Vrish Peter |
15,000 12,000 12,000 2,200 6,000 46,000 30,000 20,000 |
Bank Furniture Stock Premises Debtors Less: Provision for Doubtful Debts |
6,000 400 |
7,600 41,000 9,000 80,000 5,600 |
|
| 1,43,200 | 1,43,200 |
Additional Information:
- Premises to be appreciated by 20%, Stock to be depreciated by 10% and Provision for doubtful debts was to be maintained @5% on Debtors. Further, provision for legal damages is to be increased by ₹1,200 and furniture to be brought up to ₹45,000.
- Goodwill of the firm is valued at ₹42,000.
- ₹26,000 from Vrish’s Capital account be transferred to his loan account and balance to be paid through bank; if required, necessary loan may be obtained from bank.
- New profit sharing ratio of Krish and Peter is decided to be 5:1.
Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet.
Marks-8, CBSE:2020-21/Sample/Q-21*