Arti, Bharti and Gayatri were partners in a firm sharing profits and losses in ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2024 was a follows:
Balance Sheet of Arti, Bharti and Gayatri as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
|---|---|---|---|---|
| Creditors | 1,50,000 | Cash at Bank | 1,30,000 | |
| General Reserve | 1,30,000 | Debtors | 70,000 | |
| Employees’ Provident Fund | 25,000 | Stock | 1,05,000 | |
| Workmen Compensation Fund | 75,000 | Machinery | 1,40,000 | |
| Capitals : | Building | 2,00,000 | ||
| Arti | 2,00,000 | Patents | 5,000 | |
| Bharti | 1,00,000 | Profit and Loss A/c | 80,000 | |
| Gayatri | 50,000 | |||
| Total | 7,30,000 | Total | 7,30,000 | |
On the above date, Arti retired from the firm on the following terms :
- Goodwill of the firm was valued at ₹3,00,000.
- A provision of 5% for doubtful debts was to be created on debtors.
- Machinery was to be depreciated by 10% and building was to be appreciated by ₹22,500.
- Patents were considered as valueless and hence had to be written off.
- A claim of ₹15,000 was admitted for workmen compensation.
Prepare Revaluation Account and Partner’s Capital Accounts on Arti’s retirement.
Marks-6, CBSE: 2024-25/Zone-5/Set-1/Q-24(b)
Answer :
