Anu, Bhanu and Charu were partners in in a firm sharing profits in the ratio of 2:2:1. Anu decided to retire from the firm on 31st March, 2021. The balance sheet of the firm on that date was as follows:

Balance Sheet of Anu, Bhamu and Charu as on 31st March, 2021:

Liabilities Amount
Assets Amount
Creditors 24,000 Bank 10,000
Profit and Loss A/c 5,000 Debtors      20,000
Less: Provision for
doubtful debts      400

Capitals Stock 27,000
Anu      31,000 Investments 10,000
Bhanu      30,000 Patents 2,400
Charu      22,000 83,000 Premises 43,000
1,12,000 1,12,000

On retirement of Anu following terms were agreed upon

(i) Anu sold her share of premium for goodwill to Bhanu for 6,000 and to Charu for 3,000.

(ii) Provision for doubtful debts was to be raised to 5% on debtors

(iii) Patents were considered as valueless.

(iv) Anu was paid 9,600 through a cheque and balance was transferred to her loan A/e.

Prepare Revaluation Account and Anu’s Capital Account on her retirement.

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

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