Question - 13

A, B and C were partners in a firm sharing profit in the ratio of 1:2:3 their balance sheet on 31-03-2018 was as follows:

Liabilities: Creditors Rs. 50,000, Bill payable Rs. 20,000, General reseve Rs. 30,000, A's capital Rs. 1,00,000, B's capital Rs. 50,000, C's capital Rs. 25,000.

Assets : Land Rs. 50,000, Building Rs. 50,000, Plant Rs. 1,00,000, Stock Rs. 40,000, Debtors Rs. 30,000, Bank Rs. 5,000.

A, B and C decided to share the profit equally with effect from 01-04-2018 for this it was agreed that:

  1. Goodwill of the firm be valued at RS. 1,50,000.
  2. Land be revalued at Rs. 80,000 and building be depreciated by 6%.
  3. Creditors of Rs. 6,000 were not likely to be claimed and hence be written off.
Prepare revaluation A/c, partners capital A/c and the balance sheet of the reconsitituted.

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