Anikesh and Bhavesh are partners in a firm sharing profits in the ratio of $\displaystyle 7$:3. Their Balance Sheet as on 31st March, $\displaystyle 2023$ was as follows : Balance Sheet of Anikesh and Bhavesh as on $\displaystyle 315$* March, $\displaystyle 2023$ Amount Amount Liabilities Assets c) c) Creditors $\displaystyle 60,000$ Cash $\displaystyle 36,000$ Outstanding wages $\displaystyle 9,000$ Debtors $\displaystyle 54,000$ General Reserve $\displaystyle 15,000$ Less : Provlslon for doubtful debts $\displaystyle 6,000$ $\displaystyle 48,000$ Capitals : Stock $\displaystyle 60,000$ Anikesh $\displaystyle 1,20,000$ Furniture $\displaystyle 1,20,000$ Bhavesh $\displaystyle 1,80,000$ $\displaystyle 3,00,000$ Machinery $\displaystyle 1,20,000$ $\displaystyle 3,84,000$ $\displaystyle 3,84,000$ On 1st April, $\displaystyle 2023$ Cha fat was admitted for $\displaystyle 1$/4th share in the profits on the following terms : (i) Cha fat will bring ₹ $\displaystyle 90,000$ as her capital and ₹ $\displaystyle 30,000$ as her share of Goodwill premium. (ii) Outstanding wages will be paid. (iii) Stock will be reduced by $\displaystyle 10$%. (iv) A creditor of ₹ $\displaystyle 6,300$, not recorded in the books, was to be taken into account. Pass necessary Journal Entries for the above transactions in the books of the firm.

OR

Prina, Qadir and Kian were partners in a firm sharing profits in the ratio of $\displaystyle 7$:$\displaystyle 2$:1. On 31st March, $\displaystyle 2023$ their Balance Sheet was as follows : Balance Sheet of Prima, Qadir and Kian as on $\displaystyle 31$" March, $\displaystyle 2023$ Amount Amount Liabilities Assets c) c) Capitals : Land $\displaystyle 12,00,000$ Prlna $\displaystyle 9,60,000$ Building $\displaystyle 9,00,000$ Qadir $\displaystyle 8,40,000$ Furniture $\displaystyle 3,60,000$ Klan $\displaystyle 9,00,000$ $\displaystyle 27,00,000$ Stock $\displaystyle 6,60,000$ General Reserve $\displaystyle 3,00,000$ Debtors $\displaystyle 6,00,000$ Workmen's Less : Provision for compensation Reserve $\displaystyle 5,40,000$ doubtful debts $\displaystyle 30,000$ $\displaystyle 5,70,000$ Creditors $\displaystyle 3,60,000$ Cash at Bank $\displaystyle 2,10,000$ $\displaystyle 39,00,000$ $\displaystyle 39,00,000$ On the above date Qadir retired on the following terms : (i) Goodwill of the firm was valued at ₹ $\displaystyle 12,00$,000. (ii) Land was to be appreciated by $\displaystyle 30$% and building was to be depreciated by ₹ $\displaystyle 3,54$,000. (iii) A provision of $\displaystyle 6$% is to be maintained on debtors. (iv) Liability for workmen's compensation was determined at ₹ $\displaystyle 1,40$,000. (v) Amount payable to Qadir was transferred to his loan account. (vi) Total capital of the new firm was fixed at ₹ $\displaystyle 16,00,000$ which will be adjusted according to their new profit ratio by opening current accounts. Prepare Revaluation Account and Partners' Capital Accounts.

Books of Anikesh and Bhavesh Journal L.F Debit Credit Amount Amount Date Particulars (₹) (₹) General Reserve A/c Dr $\displaystyle 15,000$ To Anikesh’s Capital A/c $\displaystyle 10,500$ To Bhavesh’s Capital A/c $\displaystyle 4,500$ (General Reserve balance transferred to partners’ capital account in old ratio) Cash A/c /Bank A/c Dr $\displaystyle 1,20,000$ To Chahat’s Capital A/c $\displaystyle 90,000$ To Premium for goodwill A/c $\displaystyle 30,000$ (Amount brought in by Chahat as her capital and her share of goodwill) Premium for goodwill A/c Dr $\displaystyle 30,000$ To Anikesh’s Capital A/c $\displaystyle 21,000$ To Bhavesh’s Capital A/c $\displaystyle 9,000$ (Goodwill premium brought in by new partner shared by old partners in their sacrificing ratio) _____________________________________ Outstanding Wages A/c Dr $\displaystyle 9,000$ To Cash/ Bank A/c $\displaystyle 9,000$ (Outstanding wages paid) _____________________________________ $\displaystyle 12,300$ Revaluation A/c Dr To Stock A/c $\displaystyle 6,000$ To Creditors A/c $\displaystyle 6,300$ (Decrease in the value of stock and increase in the value of creditors on revaluation recorded) __________________________________ Anikesh’s Capital A/c Dr Bhavesh’s Capital A/c Dr $\displaystyle 8,610$ To Revaluation A/c $\displaystyle 3,690$ (Loss on revaluation of assets and reassessment of liabilities transferred to $\displaystyle 12,300$ partners’ capital account in old ratio) Or Q. (b) Prina, Qadir and………………………… Ans. Dr Revaluation A/c Cr Particulars Amount Amount Particulars (₹) (₹) To Building A/c ½ $\displaystyle 3,54,000$ By Land A/c ½ $\displaystyle 3,60,000$ To Provision for doubtful $\displaystyle 6,000$ debts A/c ½ $\displaystyle 3,60,000$ $\displaystyle 3,60,000$ Dr Partners’ Capital A/c Cr Particulars Prina Qadir Kian Particulars Prina Qadir Kian ₹ ₹ ₹ ₹ ₹ ₹ To Qadir’s $\displaystyle 2,10,000$ - $\displaystyle 30,000$ By balance b/d $\displaystyle 9,60,000$ $\displaystyle 8,40,000$ $\displaystyle 9,00,000$ Capital A/c ½ $\displaystyle 2,80,000$ $\displaystyle 80,000$ $\displaystyle 40,000$ By Workmen To Qadir’s Compensation $\displaystyle 12,20,000$ Loan A/c Reserve A/c By Prina’s To Kian’s $\displaystyle 7,40,000$ $\displaystyle 2,10,000$ Current Capital A/c (goodwill) A/c ½ $\displaystyle 30,000$ $\displaystyle 15$ By Kian’s Capital A/c (goodwill) By General $\displaystyle 2,10,000$ $\displaystyle 60,000$ $\displaystyle 30,000$ Reserve A/c $\displaystyle 1,60,000$ By Prina’s -- $\displaystyle 2,00,000$ Current A/c $\displaystyle 14,00,000$ To Balance c/d ½ $\displaystyle 16,10,000$ $\displaystyle 12,20,000$ $\displaystyle 9,70,000$ $\displaystyle 16,10,000$ $\displaystyle 12,20,000$ $\displaystyle 9,70,000$