Heena, Meena and Tina are partners in a firm sharing profits and losses equally. Their Balance Sheet on April 1st, 2020 was as follows:
Balance Sheet of Heena, Meena & Tina as on 1st April, 2020
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Bills Payable | 12,000 | Building | 40,000 |
| Sundry Creditors | 18,000 | Machinery | 30,000 |
| General Reserve | 12,000 | Furniture | 12,000 |
| Capitals: | Stock | 22,000 | |
| Heena | 30,000 | Debtors 20,000 | |
| Meena | 30,000 | Less: Provision for doubtful debts 1,000 |
19,000 |
| Tina | 28,000 | Bank | 7,000 |
| 1,30,000 | 1,30,000 |
Tina retired from the firm on the above date and the following was agreed upon:
- Building was to be appreciated by 20%.
- Machinery was to be depreciated by ₹1,500.
- Provision for doubtful debts was to be increased to ₹1,500.
- Goodwill was valued at ₹21,000 on Tina’s retirement and the same was to be treated without opening goodwill account.
- The balance in Tina’s Capital account will be transferred to her Loan account
Prepare Revaluation Account and Partners’ Capital Accounts.
Marks-5, CBSE:2021-22/Term-2/Zone-1/Set-1/Q-7*