BALANCE SHEET OF RAM, MOHAN, SOHAN AND HARI as on 1st April, 2016
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital A/c : | 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 this purpose the goodwill of the firm was valued at Rs.1,80,000. The partners also agreed for the following:(a) The Claim for workmen compensation has been estimated at Rs. 1,50,000.
(b) Adjust the capitals of the partners according to the new profit-sharing ratio by opening Partners’ Current Accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm.
Solution
