Q. A, B and C are partners sharing profits in 4 : 3 : 3. Their Balance Sheet as at 31st March 2018 was as follows:
| Liabilities | Rs. | Assets | Rs. |
| Sundry Creditors General Reserve A's Capital Accounts : B's Capiatal Accounts C's Capital Accounts |
1,20,000 40,000 4,00,000 2,00,000 2,00,000 |
Land and Building Stock Debtors : 1,50,000 Less : Provision for Doubtful Debts 30,000 Cash at Bank |
5,00,000 2,40,000 1,20,000 1,00,000 |
| 9,60,000 | 9,60,000 |
C retires on 1st April, 2018 and A and B decide to share future profits in the ratio of 6 : 4. It is agreed that :
(i) Goodwill of the firm is valued at Rs. 80,000
(ii) Land & Building is undervalued by Rs. 1,00,000 and Stock is overvalued by 20%.
(iii) Provision for Doubtful Debts is to be decreased to Rs. 10,000.
(iv) Computer valued Rs. 30,000 was unrecorded in the books.
It was decided to pay off C by giving him this computer and the balance in annual instalments of Rs. 1,00,000 together with interest @ 10% p.a.
You are required to prepare :
(a) Revaluation Account,
(b) C's Capital Account, and
(c) C's Loan Account till it is finally closed.
Dear Student
Revaluation account required by you:
Regards
Revaluation account required by you:
| Revalution A/c | |||||
| Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) |
| Stock (2,40,000 - (2,40,000 / 120 x 100)) | 40,000 | Land & Building | 100,000 | ||
| Provision for Doubtful Debt | 20,000 | ||||
| Computer A/c | 30,000 | ||||
| Partners Capital A/c (1,10,000 in 4:3:3) | |||||
| A | 44,000 | ||||
| B | 33,000 | ||||
| C | 33,000 | ||||
| 150,000 | 150,000 | ||||
Regards
