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*
Answer :