Prina, Qadir and Kian were partners in a firm sharing profits in the ratio of 7:2:1. On 31st March, 2023 their Balance Sheet was as follows:
Balance Sheet of Prina, Qadir and Kian as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | ||
|---|---|---|---|---|---|
| Capitals: Prina Qadir Kiran General Reserve Workmen s Compensation Reserve Creditors |
9,60,000 8,40,000 9,00,000 |
27,00,000 3,00,000 5,40,000 3,60,000 |
Land Building Furniture Stock Debtors Less: provision for doubtful debts Cash at Bank |
6,00,000 30,000 |
12,00,000 9,00,000 3,60,000 6,60,000 5,70,000 2,10,000 |
| Total | 39,00,000 | Total | 39,00,000 | ||
On the above date Qadir retired on the following terms:
(i) Goodwill of the firm was valued at Rs. 12,00,000.
(ii) Land was to be appreciated by 30% and building was to be depreciated by Rs. 3,54,000.
(iii) A provision of 6% is to be maintained on debtors.
(iv) Liability for workmen’s compensation was determined at Rs. 1,40,000.
(v) Amount payable to Qadir was transferred to his loan account.
(vi) Total capital of the new firm was fixed at Rs. 16,00,000 which will be adjusted according to their new profit ratio by opening current accounts.
Prepare Revaluation Account and Partners’ Capital Accounts.
Marks-6, CBSE: 2023-24/Zone-4/Set-1/Q-24
Answer :
