Question - 34 

Shivam, Subhi and Golu are partners in a firm they sharing profit in the ratio of 4:3:2 on 1st April, 2015 their Balance sheet was as under:

Liabilities : Creditors Rs. 41,400, Shivam Capital Rs. 1,20,000, Subhi Capital Rs. 90,000, Golu Capital Rs. 60,000.

Assets : Bank Rs. 33,000 Debotrs Rs. 29,400, Stock s. 48,000, Plant Rs. 51,000, Building Rs. 1,50,000.

Subhi had been retire from the firm the terms of which were as follows:

  1. That land and building be appreciated by 10%.
  2. The provision for bad debt is to longer nesessary.
  3. The stock be appreciated by 20%.
  4. The goodwill be fixed at Rs. 54,000 subhi's share of the same be adjusted into Shivam and Golu's capital accounts who are going to share future profits in the ratio of 2:1.
  5. The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capital of shivam and golu will be in their profit sharing ratio.
prepare revaluation account and partners capital accounts.
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