| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Creditors | 50,000 | Land | 50,000 |
| Bills Payable | 20,000 | Building | 50,000 |
| General Reserve | 30,000 | Plant | 1,00,000 |
| Capital A/cs: | Stock | 40,000 | |
| A – 1,00,000 | Debtors | 30,000 | |
| B – 50,000 | Bank | 5,000 | |
| C – 25,000 | 1,75,000 | ||
| 2,75,000 | 2,75,000 |
From 1st April, 2015, A, B and C decided to share profits equally. For this it was agreed that:
(i) Goodwill of the firm will be valued at Rs. 1,50,000.
(ii) Land will be revalued at Rs. 80,000 and building be depreciated by 6%.
(iii) Creditors of Rs. 6,000 were not likely to be claimed and hence should be written off.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm.
Solution
