Bhumi and Chavi were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Aditi in the firm on 1st April, 2022. On that date their Balance Sheet was as follows:
Balance Sheet of Bhumi and Chavi as at 1st April, 2022
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Capitals: | Machinery | 3,80,000 | |
| Bhumi 3,20,000 | Furniture | 50,000 | |
| Chavi 3,40,000 | 4,00,000 | Debtors | 2,30,000 |
| General Reserve | 80,000 | Stock | 1,50,000 |
| Bank Loan | 60,000 | Cash | 50,000 |
| Creditors | 60,000 | ||
| 8,60,000 | 8,60,000 |
Aditi was admitted in the firm with 1/3rd share in profits on the following terms:
(i) Aditi will bring ₹3,00,000 as her capital.
(ii) Aditi will bring her share of goodwill premium in cash. Goodwill of the firm was valued on the basis of two years purchase of average profits of the last three years. Average profits of the last three years were ₹60,000.
(iii) Machinery was revalued at ₹4,60,000.
(iv) The capitals of Bhumi and Chavi were adjusted on the basis of Aditi’s capital by opening current accounts.
Prepare Revaluation Account and Partners Capital Accounts.
Marks-6, CBSE:2022-23/Zone-4/Set-1/Q-25*
Answer :