Question

Radhika, Ridhima and Rupanshi were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31^st March, 2022, their balance sheet was as follows :

Balance Sheet of Radhika, Ridhlma and Rupanshi as on 31.3.2022
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Sundry Creditors		60,000	Cash		50,000
General Reserve		40,000	Stock		80,000
Capitals:			Debtors		40,000
Radhika	3,00,000	6,00,000	Investments		30,000
Ridhima	2,00,000		Buildings		5,00,000
Rupanshi	1,00,000
		7,00,000			7,00,000

Ridhima retired on the above date and it was agreed that:

1. Goodwill of the firm be valued at ₹ 3,00,000.
2. Building was valued at ₹ 6,20,000.
3. Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.

Prepare Revaluation Account and Partners' Capital Accounts on Ridhima's retirement.

Answer 1

Dr.	Revaluation Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Revaluation Profit transferred to:			By Building A/c		1,20,000
Radhika's Capital A/c	36,000	1,20,000
Ridhima's Capital A/c	60,000
Rupanshi's Capital A/c	24,000
		1,20,000			1,20,000

 

Dr.	Partner's Capital Accounts						Cr.
Particulars	Radhika (₹)	Ridhima (₹)	Rupanshi (₹)	Particulars	Radhika (₹)	Ridhima (₹)	Rupanshi (₹)
To Ridhima Capital A/c	90,000	-	60,000	By Balance b/d	3,00,000	2,00,000	1,00,000
To Ridhima Loan A/c	-	4,30,000	-	By General Reserve	12,000	20,000	8,000
To Balance c/d	3,00,000	-	2,00,000	By Revaluation A/c	36,000	60,000	24,000
				By Radhika's Capital A/c	-	90,000	-
				By Rupanshi Capital A/c	-	60,000	-
				By Partners Current A/c	42,000	-	1,28,000
	3,90,000	4,30,000	2,60,000		3,90,000	4,30,000	2,60,000

 

Balance Sheet  as at 31st March,2022
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Sundry Creditors		60,000	Cash		50,000
Capital A/c:			Stock		80,000
Radhika	3,00,000	5,00,000	Debtors		40,000
Rupanshi	2,00,000		Investments		30,000
Ridhirna's Loan		4,30,000	Buildings		6,20,000
			Current A/c:
			Radhika	42,000	1,70,000
			Rupanshi	1,28,000
		9,90,000			9,90,000

Working Note:

Goodwill of Rupanshi =`3,00,000xx5/10=₹ 1,50,000`

[Which will be given by Radhika and Rupanshi is their gaining ratio]