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
|F 6,00,000||18,00,000||Land and Buildings||10,00,000|
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.