BALANCE SHEET OF SHIKHAR AND ROHIT as at 1st April, 2013
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital A/c : | Land and Building | 3,50,000 | |
| Shikhar – 8,00,000 | Machinery | 4,50,000 | |
| Rohit – 3,50,000 | 11,50,000 | Debtors – 2,20,000 | |
| General Reserve | 1,00,000 | Less: Provision – (20,000) | 2,00,000 |
| Workmen’s Compensation Fund | 1,00,000 | Stock | 3,50,000 |
| Creditors | 1,50,000 | Cash | 1,50,000 |
| 15,00,000 | 15,00,000 |
It was agreed that:
(a) the value of Land and Building will be appreciated by 20%.
(b) the value of Machinery will be depreciated by 10%.
(c) the liabilities of Workmen’s Compensation Fund were determined at Rs. 50,000.
(d) capitals of Shikhar and Rohit will be adjusted on the basis of Kavi’s capital and actual cash to be brought in or to be paid off as the case may be.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the new firm.
SOLUTION
