Question

Following is the Balance Sheet of Mukesh and Anil sharing profit and losses in the ratio of 3:2 as on 31st March, 2019.

Balance Sheet as on 31st March, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital A/c:			Building		72,000
Mukesh	80,000	1,80,000	Plant & Machinery		60,000
Anil	1,00,000		Stock		48,000
Sundry Creditors		60,000	Debtors	42,000	40,000
Bills Payable		10,000	Less: RDD	2,000
			Bank		20,000
			Furniture		10,000
		2,50,000			2,50,000

On 1st April, 2019 Neeta is admitted on the following terms:

1. She will pay ₹ 1,00,000 of her capital and ₹ 40,000 as her share of Goodwill.
2. The new profit sharing ratio is to be 5 : 3 : 2.
3. The assets are to be revalued as under: Building ₹ 1,00,000, Plant & Machinery ₹ 48,000.
4. RDD to be increased up to ₹ 4,000.
5. The old partners decided to retain half of the amount of goodwill in the business.
6. Sundry creditors should be revalued at ₹ 66,000.

Give Revaluation Account, Capitals Accounts and Balance Sheet of New firm.

Answer 1

Dr.	In the Books of Partnership Firm Revaluation Account			Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
To Plant and Machinery A/c		12,000	By Building A/c	28,000
To RDD A/c		2,000
To Sundry Creditors A/c		6,000
To Profit on Revaluation transferred to Capital A/c:
Mukesh	4,800	8,000
Anil	3,200
		28,000		28,000

 

Dr.	Partner's Capital Accounts						Cr.
Particulars	Mukesh (₹)	Anil (₹)	Neeta (₹)	Particulars	Mukesh (₹)	Anil (₹)	Neeta (₹)
To Bank A/c	10,000	10,000		By Balance b/d	80,000	1,00,000
To Balance c/d	94,800	1,13,200	1,00,000	By Bank A/c		20,000	1,00,000
				By Goodwill  A/c	20,000
				By Revaluation A/c (Profit)	4,800	3,200
	1,04,800	1,23,200	1,00,000		1,04,800	1,23,200	1,00,000

 

Balance Sheet of Mukesh, Anil & Neeta as on 1st April, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital Account:			Building	72,000	1,00,000
Mukesh	94,800	3,08,000	Add: Appreciation	28,000
Anil	1,13,200		Plant & Machinery	60,000	48,000
Neeta	1,00,000		Less: Depreciation	12,000
Sundry Creditor		66,000	Furniture		10,000
Bills Payable		10,000	Sundry Debtors	42,000	38,000
			Less: RDD	4,000
			Stock		48,000
			Bank		1,40,000
		3,84,000			3,84,000