B, P and T were partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31.03.2022, their Balance Sheet was as follows:
Balance Sheet of B, P and T as at 31st March, 2022
|Workmen’s Compensation Fund||
|Capitals:||Less: Provision for
Doubtful debts 20,000
|T 1,00,000||7,00,000||Land and Building||5,00,000|
On the above date, B retired from the firm on the following terms:
- Goodwill of the firm will be valued at ₹3,60,000 and B’s share will be adjusted without opening goodwill account.
- Furniture will be reduced to ₹60,000.
- A claim of ₹1,00,000 was admitted for workmen’s compensation.
- B was paid ₹20,000 through a cheque and the balance was transferred to his loan account.
Prepare Revaluation Account and Partners’ Capital Accounts.