Anita, Geeta and Sita were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follow:

Balance Sheet of Anita, Geeta and Sita as at 31st March, 2022

Liabilities Amount
Assets Amount
Capitals: Land and Buildings 4,80,000
Anita 2,00,000 Investment 1,20,000
Geeta 2,00,000 Debtors 1,50,000
Sita 1,00,000 5,00,000 Less: Provision for
Doubtful debts 10,000

General Reserve 30,000 Stock 1,20,000
Creditors 5,00,000 Cash at Bank 1,70,000
10,30,000 10,30,000

On the above date, Anita retired from the firm and the remaining partners decided to carry on the business. It was agreed to revalue the assets and reassess the liabilities as follows:

(i) Goodwill of the firm was valued at 3,00,000.

(ii) Land and Building was to be appreciated by 1,23,000.

(iii) Bad debts amounted to 20,000. A provision for doubtful debts was to be maintained at 10% on debtors.

(iv) Anita was paid 80,000 immediately by cheque. The balance amount was transferred to her loan acount which was to be paid in two equal annual instalments along with interest @ 10% p.a.


Prepare Revaluation Account and Partner’s Capital Accounts on Anita’s retirement. 


Marks-6, CBSE:2022-23/Zone-3/Set-1/Q-24*

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