| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Employees Provident Fund | 17,000 | Cash | 6,100 |
| Workmen Compensation Reserve | 6,000 | Stock | 15,000 |
| Investment Fluctuation Reserve | 4,100 | Debtors – 50,000 | |
| Capital’s A/c : | Less : Provision for Doubtful Debts – (2,000) | 48,000 | |
| A – 54,000 | Investments | 7,000 | |
| B – 35,000 | 89,000 | Goodwill | 40,000 |
| 1,16,100 | 1,16,100 |
The following adjustments were agreed upon:
(a) C brings in Rs. 16,000 as goodwill and proportionate capital.
(b) Bad debts amounted to Rs. 3,000.
(c) Market value of investment is Rs. 4,500.
(d) Liability on account of Workmen Compensation Reserve amounted to Rs. 2,000.
Prepare Revaluation Account and Partners’ Capital Accounts.
SOLUTION
