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:
- Goodwill of the firm was valued at ₹1,00,000 D’s share of goodwill was adjusted through the capital accounts of remaining partners.
- Investments were to be brought to their market value which was ₹85,000
- Machinery was to be depreciated to ₹7,00,000.
- Land and Building was to be appreciated to ₹12,00,000
- 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*
Answer :