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 31st 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 : Provislon 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 $\displaystyle 1,530,000$ $\displaystyle 3,00,000$ 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 31st March, $\displaystyle 2023$ Liabilities Amount Assets Amount 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. Following was agreed : (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 Par'culars (₹) (₹) 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 ra-o) Cash/ 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 ra-o) _____________________________________ Outstanding Wages A/c Dr $\displaystyle 9,000$ To Cash/ Bank A/c $\displaystyle 9,000$ (Outstanding wages paid) _____________________________________ Revalua-on A/c Dr $\displaystyle 12,300$ 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 revalua-on recorded) _____________________________________ Anikesh’s Capital A/c Dr $\displaystyle 8,610$ Bhavesh’s Capital A/c Dr $\displaystyle 3,690$ $\displaystyle 12,300$ To Revalua-on A/c (Loss on revalua-on of assets and reassessment of liabili-es transferred to partners’ capital account in old ra-o) Or Q. (b) Prina, Qadir and………………………… Ans. Dr Revalua-on A/c Cr Par-culars Amount Amount Par-culars (₹) (₹) To Building A/c ½ $\displaystyle 3,54,000$ By Land A/c ½ $\displaystyle 3,60,000$ To Provision for doubyul $\displaystyle 6,000$ debts A/c ½ $\displaystyle 3,60,000$ $\displaystyle 3,60,000$ Dr Partners’ Capital A/c Cr Par7culars Prina Qadir Kian Par7culars 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 $\displaystyle 2,80,000$ $\displaystyle 80,000$ $\displaystyle 40,000$ By Workmen To Qadir’s Compensa7on Loan A/c Reserve A/c $\displaystyle 12,20,000$ By Prina’s To Kian’s $\displaystyle 7,40,000$ $\displaystyle 2,10,000$ Capital A/c Current (goodwill) A/c ½ $\displaystyle 30,000$ By Kian’s Capital A/c (goodwill) By General $\displaystyle 2,10,000$ $\displaystyle 60,000$ $\displaystyle 30,000$ Reserve A/c By Prina’s $\displaystyle 1,60,000$ To Balance Current A/c $\displaystyle 14,00,000$ -- $\displaystyle 2,00,000$ c/d ½ $\displaystyle 16,10,000$ $\displaystyle 12,20,000$ $\displaystyle 9,70,000$ $\displaystyle 16,10,000$ $\displaystyle 12,20,000$ $\displaystyle 9,70,000$