P, Q and R were partners in a firm sharing profits in the ratio of 3:2:1 respectively. On March 31st, 2022, the balance sheet of the firm stood as follows:
Balance Sheet
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 13,000 | Cash | 4,700 |
| Bills Payable | 590 | Debtors | 8,000 |
| Capitals Accounts: | Stock | 11,690 | |
| P 15,000 | Buildings | 23,000 | |
| Q 10,000 | Profit and Loss Account | 1,200 | |
| R 10,000 | 35,000 | ||
| 48,590 | 48,590 |
Q retired on the above-mentioned date on the following terms:
- Buildings to be appreciated by ₹7,000
- A provision for doubtful debts to be made at 5 % on debtors.
- Goodwill of the firm is valued at ₹18,000 and adjustment to be made by raising and writing off the goodwill.
- ₹2,800 was to be paid to Q immediately and the balance in his capital account to be transferred to his loan account carrying interest as per the agreement.
- Remaining partner decided to maintain equal capital balances, by opening current account.
Prepare the revaluation account and partner’s capital accounts.
Marks-6, CBSE:2022-23/Sample/Q-24*