Question - 32 

Radha, Sheela and Meena are partners they distribute profit and loss in the ratio of 3:2:1 on April 1, 2015 Sheela reitres from the firm on that date their Balance sheet was as follows :

Liabilites : Creditors Rs. 3,000, Bill payable Rs. 4,500, Outstanding Exp. Rs. 4,500, General Reserve Rs. 13,500, Radha capital Rs. 15,000, Sheela Capital Rs. 15,000 and Meena Capital Rs. 15,000.

Assets : Cash Rs. 1,500, Bank Rs. 7,500, Debtors Rs. 15,000, Stock Rs. 12,000, Factory Premises Rs. 22,500, machinery Rs. 8,000, Loose tools Rs. 4,000.

The terms were:

  1. Goodwill of the firm was valued at Rs. 13,000.
  2. Expenses owing to be brought down to Rs. 3,750.
  3. Machinery and loose tools are to be valued at 10% less than book value.
  4. Factory premises are to be revalued at Rs. 24,300.
Prepare : (i) Revaluation Account, (ii) Partners capital Account : (iii) Balance sheet of the firm after retirement of sheela.
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