Anna, Bina and Teena were partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet on 31st March, 2022 was as follows:

Balance Sheet of Anna, Bina and Teena as at 31st March, 2022

Liabilities Amount
Assets Amount
Creditors 66,000 Furniture 1,12,000
Bills Payable 59,000 Stock 1,77,000
Capitals: Debtors 2,80,000
Anna 2,00,000 Less: Provision for
Bad Debts 7,000

2,73,000
Bina 2,00,000 Cash 63,000
Teena 1,00,000 5,00,000
6,25,000 6,25,000

On the above date, Anna retired on the following terms:

(i) Goodwill of the firm was valued at 60,000 and Anna’s share of goodwill was adjusted through the capital accounts of remaining partners.

(ii) Furniture was depreciated by 10,000.

(iii) Anna was to be paid through cash brought in by Bina and Teena in such a way as to make their capitals proportionate to their new profit sharing ratio of 1 : 1.

 

Prepare Revaluation and Partners Capital Accounts.

Marks-6, CBSE:2022-23/Zone-4/Set-1/Q-25*

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