Anand and Bir were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. On 31st March, $\displaystyle 2025$, their Balance Sheet was as follows : Balance Sheet of Anand and Bir as on 31st March, $\displaystyle 2025$ Amount Amount Liabilities Assets ( ) ( ) Creditors $\displaystyle 45,000$ Cash $\displaystyle 9,000$ Workmen Compensation Fund $\displaystyle 15,000$ Debtors $\displaystyle 36,000$ Capitals : Anand $\displaystyle 90,000$ Stock $\displaystyle 45,000$ Bir $\displaystyle 60,000$ $\displaystyle 1,50,000$ Furniture $\displaystyle 30,000$ Plant and Machinery $\displaystyle 90,000$ $\displaystyle 2,10,000$ $\displaystyle 2,10$,000st L th On $\displaystyle 1$ April, $\displaystyle 2025$, they admitted Vishal as a new partner for $\displaystyle 6$ share in the profits of the firm. It was agreed that : (i) Vishal will bring ₹ $\displaystyle 45,000$ as his capital and ₹ $\displaystyle 15,000$ for his $\displaystyle 2$' t share of goodwill premium. (ii) Stock was to be reduced by $\displaystyle 10$% and machinery was to be appreciated by $\displaystyle 10$%. (iii) Furniture was revalued at ₹ $\displaystyle 27$,000. (iv) $\displaystyle 5$% provision for bad debts was to be created and $\displaystyle 600$ were T to be provided for outstanding repair bill. (v) There were unrecorded investments of ₹ $\displaystyle 3,000$ which were to be recorded. (vi) A creditor of $\displaystyle 900$ was not likely to claim his money and T hence was to be written off. Pass necessary journal entries for the above transactions in the books of the firm on Vishal's admission.

OR

Radha, Shyam and Meera were partners in a firm sharing profits and losses equally. Their Balance Sheet as at 31st March, $\displaystyle 2025$ was as follows : Balance Sheet of Radha, Shyam and Meera as at 31st March, $\displaystyle 2025$ Amount Amount Liabilities Assets ( ) ( ) Capitals : Patents $\displaystyle 1,80,000$ Radha $\displaystyle 4,00,000$ Building $\displaystyle 6,90,000$ Shyam $\displaystyle 4,00,000$ Debtors $\displaystyle 2,70,000$ Meera $\displaystyle 4,00,000$ $\displaystyle 12,00,000$ Stock $\displaystyle 3,60,000$ General Reserve $\displaystyle 3,00,000$ Bank $\displaystyle 1,80,000$ Creditors $\displaystyle 1,80,000$ $\displaystyle 16,80,000$ $\displaystyle 16,80,000$ Shyam retired from the firm on the above date on the following terms : (i) The new profit sharing ratio between the remaining partners was agreed at $\displaystyle 3$ : 2. (ii) The value of stock was to be reduced by ₹ $\displaystyle 1,20$,000. (iii) Patents were considered as valueless and hence were to be written off. (iv) Goodwill of the firm was valued at ₹ $\displaystyle 6,00,000$ on Shyam's retirement. (v) Shyam was paid ₹ $\displaystyle 1,00,000$ immediately on his retirement and the balance was transferred to his loan account. Prepare Revaluation Account and Partners' Capital Accounts.

In the Books of Anand, Bir and Vishal Journal Date Particulars L.F. Amount Amount (`) (`) $\displaystyle 2025$ April $\displaystyle 1$ Cash / Bank A/c Dr. $\displaystyle 60,000$ To Vishal’s Capital A/c $\displaystyle 45,000$ To Premium for Goodwill A/c $\displaystyle 15,000$ (Capital and goodwill brought in by Vishal) April $\displaystyle 1$ Premium for Goodwill A/c Dr. $\displaystyle 15,000$ To Anand’s Capital A/c $\displaystyle 9,000$ To Bir’s Capital A/c $\displaystyle 6,000$ (Premium divided among sacrificing partners in sacrificing ratio) April $\displaystyle 1$ Workmen’s Compensation Fund A/c Dr. $\displaystyle 15,000$ To Anand’s Capital A/c $\displaystyle 9,000$ To Bir’s Capital A/ c $\displaystyle 6,000$ (Workmen compensation fund divided among old partners in old ratio) April $\displaystyle 1$ Revaluation A/c Dr. $\displaystyle 9,900$ To Furniture A/c $\displaystyle 3,000$ To Stock A/c $\displaystyle 4,500$ To Provision for Doubtful Debts A/c $\displaystyle 1,800$ To Outstanding Repair Bill A/c $\displaystyle 600$ (Decrease in assets and increase in liabilities brought into the books) April $\displaystyle 1$ Machinery A/c Dr. $\displaystyle 9,000$ Investments A/c Dr. $\displaystyle 3,000$ Creditors A/c Dr. $\displaystyle 900$ To Revaluation A/c $\displaystyle 12,900$ (Increase in assets and decrease in liabilities brought into the books) April $\displaystyle 1$ Revaluation A/c Dr. $\displaystyle 3,000$ To Anand’s Capital A/c $\displaystyle 1,800$ To Bir’s Capital A/c $\displaystyle 1,200$ (Gain on revaluation transferred to old partners’ capital account in old profit-sharing ratio) . Q. Radha, Shyam and Meera were partners … Ans. Dr. Revaluation A/c Cr. Particulars Amount Particulars Amount (`) (`) To Stock A/c (½) $\displaystyle 1,20,000$ By Capital A/c (loss) (½) To Patents A/c (½) $\displaystyle 1,80,000$ Radha $\displaystyle 1,00,000$ Shyam $\displaystyle 1,00,000$ Meera $\displaystyle 1,00,000$ $\displaystyle 3,00,000$ $\displaystyle 3,00,000$ $\displaystyle 3,00,000$ Dr. Partners’ Capital Account Cr. Particulars Radha Shyam Meera Particulars Radha Shyam Meera (`) (`) (`) (`) (`) (`) To By Revaluati balance on A/c (½) $\displaystyle 4,00,000$ $\displaystyle 4,00,000$ $\displaystyle 4,00,000$ b/d (½) $\displaystyle 1,00,000$ $\displaystyle 1,00,000$ $\displaystyle 1,00,000$ (loss) By To General $\displaystyle 1,00,000$ $\displaystyle 1,00,000$ $\displaystyle 1,00,000$ Shyam’s Reserve $\displaystyle 1,60,000$ - $\displaystyle 40,000$ Capital (½) A/c A/c (½) By To Cash Radha’s /Bank A/c Capital (½) A/c (½) To By Shyam’s Meera’s Loan A/c Capital - $\displaystyle 40,000$ - (½) (½) A/c To $\displaystyle 2,40,000$ - $\displaystyle 3,60,000$ Balance c/d $\displaystyle 5,00,000$ $\displaystyle 7,00,000$ $\displaystyle 5,00,000$ $\displaystyle 5,00,000$ $\displaystyle 7,00,000$ $\displaystyle 5,00,000$ Part – B Option I (Analysis of Financial Statements)