Anu, Bhanu and Charu were partners in in a firm sharing profits in the ratio of 2:2:1. Anu decided to retire from the firm on 31st March, 2021. The balance sheet of the firm on that date was as follows:
Balance Sheet of Anu, Bhamu and Charu as on 31st March, 2021:
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 24,000 | Bank | 10,000 |
| Profit and Loss A/c | 5,000 | Debtors 20,000 | |
| Less: Provision for doubtful debts 400 |
19,600 |
||
| Capitals | Stock | 27,000 | |
| Anu 31,000 | Investments | 10,000 | |
| Bhanu 30,000 | Patents | 2,400 | |
| Charu 22,000 | 83,000 | Premises | 43,000 |
| 1,12,000 | 1,12,000 |
On retirement of Anu following terms were agreed upon
(i) Anu sold her share of premium for goodwill to Bhanu for ₹6,000 and to Charu for ₹3,000.
(ii) Provision for doubtful debts was to be raised to 5% on debtors
(iii) Patents were considered as valueless.
(iv) Anu was paid ₹9,600 through a cheque and balance was transferred to her loan A/e.
Prepare Revaluation Account and Anu’s Capital Account on her retirement.
Marks-5, CBSE:2021-22/Term-2/Zone-5/Set-1/Q-7*