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

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:

  1. Building was to be appreciated by 20%. 
  2. Machinery was to be depreciated by 1,500. 
  3. Provision for doubtful debts was to be increased to 1,500.
  4. Goodwill was valued at 21,000 on Tina’s retirement and the same was to be treated without opening goodwill account.
  5. 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*

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