Divya and Ekta were partners in a firm sharing profits in the ratio of 3: 1. On 31 March, 2023 they admitted Sona as a new partner for 14 th share in the profits of the firm. Their Balance Sheet on that date was as follows:
Balance Sheet of Divya and Ekta as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | ||
|---|---|---|---|---|---|
| Capitals: Divya Ekta General Reserve Creditors |
10,00,000 7,00,000 |
17,00,000 3,20,000 5,40,000 |
Land and Building Machinery Stock Debtors Less: provision for doubtful debts Investments Cash at Bank |
4,00,000 30,000 |
5,00,000 6,00,000 1,50,000 3,70,000 5,00,000 4,40,000 |
| Total | 25,60,000 | Total | 25,60,000 | ||
Sona will bring Rs. 4,00,000 as her capital and her share of goodwill in cash. It was agreed that:
(i) Goodwill of the firm was valued at Rs. 2,40,000.
(ii) Land & Building were valued at Rs. 7,12,000,
(iii) Provision for doubtful debts was found to be in excess by Rs. 8,000
(iv) A liability for Rs. 20,000 included in Creditors was not likely to arise.
(v) The capitals of Divya and Ekta will be adjusted on the basis of Sona’s capital by opening current accounts.
Prepare Revaluation Account and Partners’ Capital Accounts.
Marks-6, CBSE: 2023-24/Zone-5/Set-1/Q-24
Answer :
