Naval, Nyaya and Nritya were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31st March, 2024, their Balance Sheet was as follows:
Balance Sheet of Naval, Nyaya and Nritya as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
|---|---|---|---|---|---|
| Capitals: | Land and Building | 9,50,000 | |||
| Naval | 2,00,000 | Plant and Machinery | 2,00,000 | ||
| Nyaya | 3,00,000 | Furniture | 50,000 | ||
| Nritya | 5,00,000 | 10,00,000 | Debtors | 95,000 | |
| General Reserve | 80,000 | Less: Provision for doubtful debts | 5,000 |
90,000 | |
| Mrs. Naval Loan | 2,00,000 | Bank | 70,000 | ||
| Creditors | 1,50,000 | ||||
| 14,30,000 | 14,30,000 | ||||
On the above date, Nyaya retired from the firm on the following terms:
(i) Goodwill of the firm was valued at share of the same was to be adjusted through the capital accounts of remaining partners.
(ii) Land and Building was to be increased by ₹50,000.
(iii) Plant and Machinery will be depreciated by 10%.
(iv) All debtors were found to be good, hence provision for bad debts was not required.
(v) Investments of ₹65,000 were unrecorded.
(vi) Amount payable to Nyaya was transferred to his loan account.
Prepare Revaluation Account and Partners Capital Accounts on Nyaya retirement.
Marks-6, CBSE: 2024-25/Zone-7/Set-1/Q-24*
Answer :
