Anshu and Vihu were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance sheet as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Creditors | 80,000 | Cash | 40,000 |
| General Reserve | 50,000 | Debtors 36,000 Less: PDD 2,000 |
34,000 |
| Investment Fluctuation Fund |
10,000 | Stock | 30,000 |
| Capitals: Anshu Vihu |
1,44,000 80,000 |
Investments | 40,000 |
| Plant and Machinery |
2,20,000 | ||
| 3,64,000 | 3,64,000 |
On 1st April, 2023, Mani was admitted into partnership for 1/5th share in the profits of the following terms:
(i) Mani brought 20,000 as her share of goodwill and proportionate capital.
(ii) Provision for Doubtful Debts was to be maintained at 10% on debtors.
(iii) Market Value of investments was 35,000
(iv) The value of Plant and Machinery be increased by 6,600.
Prepare Revaluation Account and Partners’ Capital Accounts.
(CBSE 2024 C)
[Ans.: Sacrificing Ratio – 3 : 2; Gain (Profit) on Revaluation – 5,000; Partners’ Capital A/c Balances: Anshu – 1,92,000; Vihu – 1,12,000; Mani – 76,000.]
Solution :
