| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital A/c : | Land and Building | 2,10,000 | |
| Kalpana – 4,80,000 | Plant | 2,70,000 | |
| Kanika – 2,10,000 | 6,90,000 | Stock | 2,10,000 |
| General Reserve | 60,000 | Debtors – 1,32,000 | |
| Workmen’s Compensation Fund | 1,00,000 | Less: Provision – (12,000) | 1,20,000 |
| Creditors | 90,000 | Cash | 26,000 |
| 1,30,000 | |||
| 9,40,000 | 9,40,000 |
It was agreed that:
(a) the value of Land and Building will be appreciated by 20%.
(b) the value of plant be increased by Rs. 60,000.
(c) Karuna will bring Rs. 80,000 for her share of goodwill premium.
(d) the liabilities of Workmen’s Compensation Fund were determined at Rs. 60,000.
(e) Karuna will bring in cash as capital to the extent of 1/5th share of the total capital of the new firm.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the new firm.
SOLUTION
