Ravi, Tanu and Sara were partners in a firm sharing profits and losses in the ratio of 5:3:2. Ravi retired from the firm due to his illness on 31st March, 2023. The Balance Sheet of the firm on that date was as follows:
Balance Sheet of Ravi, Tanu and Sara as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | |
|---|---|---|---|---|
| Capitals: Ravi Tanu Sara Profit and Loss Employees Provident Fund Creditors |
80,000 1,24,000 66,000 |
2,70,000 1,70,000 20,000 1,00,000 |
Fixed Assets Stock Debtors Cash in hand |
1,20,000 1,60,000 2,00,000 80,000 |
| Total | 5,60,000 | Total | 5,60,000 | |
Additional Information:
(i) Creditors included a sum of Rs. 4,000 which was not likely to be claimed.
(ii) A provision of 5% for doubtful debts was to be created on debtors.
(iii) Goodwill of the firm was valued at Rs.1,60,000.
(iv) Fixed Assets were found overvalued by Rs. 5,000.
(v) New profit-sharing ratio of Tanu and Sara was agreed at 2:3.
(vi) The amount due to Ravi was transferred to his loan account.
Prepare Revaluation Account and Partners’ Capital Accounts on Ravi’s retirement.
Marks-6, CBSE: 2023-24/Zone-2/Set-1/Q-25
Answer :
