Balance Sheet of X and Y, who share profits and losses as 5 : 3, as at 1st April, 2022 is:
| Liabilities | ₹ | Assets | ₹ |
| X’s Capital Y’s Capital General Reserve Workmen Compensation Reserve Employee’s Provident Fund Sundry Creditors |
52,000 54,000 4,800 10,000 1,000 5,000 |
Goodwill Machinery Furniture Sundry Debtors Stock Bank Advertisement Suspense A/c |
8,000 38,000 15,000 33,000 7,000 25,000 800 |
| 1,26,800 | 1,26,800 |
On the above date, they decided to change their profit sharing ratio to 3 : 5 and agreed upon the following:
a) Goodwill be valued on the basis of two year’s purchse of the average profit of the last three years. Profits for the years ended 31st March, are: 2020 – ₹ 7,500; 2021 – ₹ 4,000; 2022 – ₹ 6,500.
b) Machiney and stock be revalued at ₹ 45,000 and ₹ 8,000 respectively.
c) Claim on account of workmen compensation is ₹ 6,000.
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the new firm.
I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
