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
|Meena||30,000||Less: Provision for
doubtful debts 1,000
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.