Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows:
Balance Sheet of Ram, Mohan, Sohan and Hari as on 1st April, 2016
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs: Ram Mohan Sohan Hari Workmen Compensation Resreve |
4,00,000 4,50,000 2,50,000 2,00,000 1,20,000 |
Fixed Assets Current Assets |
9,00,000 5,20,000 |
| 14,20,000 | 14,20,000 |
From the above date, the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purpose the goodwill of the firm was valued at ₹ 1,80,000. The partners also agreed for the following:
a) The claim for workmen’s compensation has been estimated at ₹ 1,50,000.
b) Adjust the capital of the partners according to the new profit-sharing ratio by opening partners’ current accounts.
Prepare the Revaluation Account, Partner’s Capital Accounts, and the Balance Sheet of the reconstituted firm.
