Anna, Bina and Teena were partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet on 31st March, 2022 was as follows:
Balance Sheet of Anna, Bina and Teena as at 31st March, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 66,000 | Furniture | 1,12,000 |
| Bills Payable | 59,000 | Stock | 1,77,000 |
| Capitals: | Debtors 2,80,000 | ||
| Anna 2,00,000 | Less: Provision for Bad Debts 7,000 |
2,73,000 |
|
| Bina 2,00,000 | Cash | 63,000 | |
| Teena 1,00,000 | 5,00,000 | ||
| 6,25,000 | 6,25,000 |
On the above date, Anna retired on the following terms:
(i) Goodwill of the firm was valued at ₹60,000 and Anna’s share of goodwill was adjusted through the capital accounts of remaining partners.
(ii) Furniture was depreciated by ₹10,000.
(iii) Anna was to be paid through cash brought in by Bina and Teena in such a way as to make their capitals proportionate to their new profit sharing ratio of 1 : 1.
Prepare Revaluation and Partners Capital Accounts.
Marks-6, CBSE:2022-23/Zone-4/Set-1/Q-25*
Answer :