31. Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4: 3: 2: 1. On 1st April, 2016, their Balance Sheet was as follows:
BALANCE SHEET OF RAM, MOHAN, SOHAN AND HARI as on Ist April, 2016
Liabilities | ₹ | Assets | ₹ |
Capital A/cs | Fixed Assets | 9,00,000 | |
Ram 4,00,000 | Current Assets | 5,20,000 | |
Mohan 4,50,000 | |||
Sohan 2,50,000 | |||
Hari 2,00,000 | 13,00,000 | ||
Workmen Compensation Reserve | 1,20,000 | ||
14,20,000 | 14,20,000 |
From the above date, the partners decided to share the future profits in the ratio of 1:2:3:4. For the purpose the goodwill of the firm was valued at ₹1,80,000. The partners also agreed for the following:
(a) The claim for workmen compensation has been estimated at ₹1,50,000.
(b) Adjust the capitals of the partners according to new profit-sharing ratio by opening Partners Current Accounts
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm
(Delhi 2017)
Answer :