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# Solution - Nardeep, Hardeep and Gagandeep Were Partners in a Firm Sharing Profits in 2:1:3 Ratio. Their Balance Sheet as on 31.3.2015 Was as Follows - CBSE (Science) Class 12 - Accountancy

ConceptPreparation of Revaluation Account and Balance Sheet

#### Question

Nardeep, Hardeep and Gagandeep were partners in a firm sharing profits in 2:1:3 ratio. Their Balance Sheet as on 31.3.2015 was as follows

Balance Sheet of Nardeep,Hardeep and Gagandeep as on 31-3-2015

 Liabilities Amount Rs Assets Amount Rs Creditors Bills Payable General Reserve Capitals  Nardeep            2,00,000  Hardeep            1,00,000  Gagandeep          50,000 1,00,000                     40,000                     60,000                       3,50,000 Land Building Plant Stock Debtors Bank 1,00,000 1,00,000 2,00,000 80,000 60,000 10,000 5,50,000 5,50,000

From 1-4-2015 Nardeep, Hardeep and Gagandeep decided to share the future profits equally. For this purpose it was decided that

(a) Goodwill of the firm be valued at Rs 3, 00,000.

(b) Land be revalued at Rs 1, 60,000 and building be depreciated by 6%.

(c) Creditors of Rs 12,000 were not likely to be claimed and hence be written off.

Prepare, Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm.

#### Solution

Revaluation Account

Dr.                                                                                                                                                     Cr

 Particulars Amount Rs Particulars Amount Rs Building A/c   Revaluation Profit      Nardeep         22,000      Hardeep         11,000      Gagandeep    33,000 6,000                    66,000 Land A/c   Creditors A/c 60,000                  12,000 72,000 72,000

Partner’s Capital Account

Dr.                                                                                                                                                                                                                                Cr.

 Particulars Nardeep Rs Hardeep Rs Gagandeep Rs Particulars Nardeep Rs Hardeep Rs Gagandeep Rs Gagandeep’s Capital A/c         Balance c/d 2,42,000 50,000                      71,000 1,63,000 Balance b/d R/V Profit General Reserve Hardeep’s Capital A/c 2,00,000                22,000                  20,000 1,00,000                11,000                  10,000 50,000             33,000               30,000               50,000 2,42,000 1,21,000 1,63,000 2,42,000 1,21,000 1,63,000

Balance Sheet

 Liabilities Amount Rs Assets Rs Amount Rs Capital           Nardeep               2,42,000           Hardeep                  71,000          Gagandeep           1,63,000       Creditors                        1,00,000     Less : Written off          12,000    Bills payable 4,76,000                                                 88,000                   40,000 Land                                 1,00,000       Add :Increase                60,000  Building                            1,00,000       Less : Dep                       6,000    Plant Bank Stock Debtors 1,60,000               94,000                2,00,000          10,000          80,000          60,000 6,04,000 6,04,000

Working Notes

Old Ratio                New Ratio

2:1:3                          1:1:1

S/R of Nardeep = Old Ratio - New Ratio= 2/6-1/3=0/6

S/R of Hardeep = Old Ratio - New Ratio=  1/6-1/3=-1/6=>

S/R of Gagandeep = Old Ratio - New Ratio = 3/6-1/3=1/6=>

Hardeep will compensate Gagandeep, since he is gaining

Hardeep’s Capital A/c                                  Dr                            50,000

To Gagandeep’s Capital A/c                                                         50,000

Is there an error in this question or solution?
Solution for question: Nardeep, Hardeep and Gagandeep Were Partners in a Firm Sharing Profits in 2:1:3 Ratio. Their Balance Sheet as on 31.3.2015 Was as Follows concept: null - Preparation of Revaluation Account and Balance Sheet. For the courses CBSE (Science), CBSE (Arts), CBSE (Commerce)
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