D, E and F were partners in a firm sharing profits in the ratio of 5:2:3. On 31.3.2022 their balance sheet was as follows

Balance Sheet of D, E and F as on 31.3.2022

Liabilities Amount
Assets Amount
Creditors 53,000 Cash 16,000
Bills Payable 62,000 Bank 17,000
General Reserve 2,00,000 Stock 18,000
Capitals Debtors 1,99,000
D       7,00,000 Investments 1,15,000
E      5,00,000 Machinery 7,50,000
F      6,00,000 18,00,000 Land and Buildings 10,00,000
21,15,000 21,15,000

On the above date D retired from the firm and the following was agreed upon:

  1. Goodwill of the firm was valued at 1,00,000 D’s share of goodwill was adjusted through the capital accounts of remaining partners.
  2. Investments were to be brought to their market value which was 85,000
  3. Machinery was to be depreciated to 7,00,000. 
  4. Land and Building was to be appreciated to 12,00,000
  5. The balance in D’s capital account was transferred to his loan account. 

Prepare Revaluation Account and D’s Capital Account on his retirement.

Marks-5, CBSE:2021-22/Term-2/Zone-3/Set-1/Q-7*

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