Radhika, Ridhima and Rupanahi were partners in a firm sharing profits and losses in the ratio of 3:5:2, On 31st March, 2022, their balance sheet was as follows:

Balance Sheet of Radhika, Ridhima and Rupanshi as on 31.3.2022

Liabilities Amount
Assets Amount
Sundry Creditors 60,000 Cash 50,000
General Reserve 40,000 Stock 80,000
Capitals: Debtors 40,000
Radhika      3,00,000 Investments 30,000
Ridhima      2,00,000 Buildings 5,00,000
Rupanshi      1,00,000 6,00,000
7,00,000 7,00,000

Ridhima retired on the above date and it was agreed that:

(i) Goodwill of the firm be valued at 3,00,000.

(ii) Building was valued at 6,20,000.

(iii Capital of the new firm was fixed at 5,00,000, which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.

Prepare Revaluation Account and Partners’ Capital Accounts on Ridhima’s retirement.

Marks-6, CBSE:2022-23/Zone-2/Set-1/Q-26*

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