BALANCE SHEET OF A AND B as at 31st March, 2018
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capitals: | Cash | 8,000 | |
| A – 1,04,000 | Sundry Debtors – 37,600 | ||
| B – 52,000 | 1,56,000 | Less: Provision for Doubtful Debts -(1,600) | 36,000 |
| Creditors | 1,54,000 | Stock | 60,000 |
| Employees’ Provident Fund | 16,000 | Prepaid Insurance | 6,000 |
| Workmen Compensation Fund | 10,000 | Plant and Machinery | 76,000 |
| Contingency Reserve | 10,000 | Building | 1,40,000 |
| Furniture | 20,000 | ||
| 3,46,000 | 3,46,000 |
C was admitted as a new partner and brought 64,000 as capital and 15,000 for his share of goodwill premium. The new profit-sharing ratio was 5: 3: 2. On C’s admission the following was agreed upon:
(i) Stock was to be depreciated by 5%.
(ii) Provision for doubtful debts was to be made at Rs. 2,000.
(iii) Furniture was to be depreciated by 10%.
(iv) Building was valued at Rs. 1,60,000.
(v) Capitals of A and B were to be adjusted on the basis of C’s capital by bringing or
paying of cash as the case may be.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of reconstituted firm. (CBSE 2021)
SOLUTION
