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:
|Profit and Loss A/c||5,000||Debtors 20,000|
|Less: Provision for
doubtful debts 400
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.