Asha and Indra were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. Their Balance Sheet on 31st March, $\displaystyle 2025$ was as following : Balance Sheet of Asha and Indra as at 31st March, $\displaystyle 2025$ Amount Amount Liabilities Assets ( ) ( ) Capitals : Plant and Machinery $\displaystyle 4,05,000$ Asha $\displaystyle 4,00,000$ Furniture $\displaystyle 1,20,000$ Indra $\displaystyle 3,00,000$ $\displaystyle 7,00,000$ Debtors $\displaystyle 80,000$ Less : General Reserve $\displaystyle 50,000$ Provision for doubtful debts $\displaystyle 4,000$ $\displaystyle 76,000$ Creditors $\displaystyle 20,000$ Stock $\displaystyle 1,54,000$ Cash at bank $\displaystyle 15,000$ $\displaystyle 7,70,000$ $\displaystyle 7,70,000$ On 1st April, $\displaystyle 2025$, Suraj was admitted for $\displaystyle 1$/4th share in the profits of the firm on the following terms : (i) Suraj will bring capital proportionate to his share in the profits of the firm. (ii) Goodwill of the firm was valued at $\displaystyle 1,00,000$ and Suraj will bring his share of goodwill premium in cash. (iii) Furniture was taken over by Asha at $\displaystyle 1,00$,000. (iv) A liability of $\displaystyle 5,000$ included in creditors was not likely to arise. (v) Plant and Machinery was revalued at $\displaystyle 4,35$,000. Prepare Revaluation Account and Partners' capital accounts on Suraj's admission. Show the calculation of proportionate capital clearly.

Books of Asha and Indra Dr. Revaluation A/c Cr. Particulars Amount(₹) Particulars Amount(₹) To Furniture A/c $\displaystyle 20,000$ By Creditors A/c $\displaystyle 5,000$ ½ ½ To Gain on revaluation transferred to partners’ By Plant and Machinery A/c $\displaystyle 30,000$ capital accounts: Asha $\displaystyle 9,000$ Indra $\displaystyle 6,000$ $\displaystyle 15,000$ $\displaystyle 35,000$ $\displaystyle 35,000$ Dr. Partners’ Capital A/c Cr. Particulars Asha Indra Suraj Particulars Asha Indra Suraj (₹) (₹) (₹) (₹) (₹) (₹) To Furniture $\displaystyle 100000$ By Balance b/d $\displaystyle 400000$ $\displaystyle 300000$ A/c ½ To Balance $\displaystyle 354000$ $\displaystyle 336000$ $\displaystyle 230000$ General $\displaystyle 30000$ $\displaystyle 20000$ By c/d ½ Reserve ½ By Premium for $\displaystyle 15000$ $\displaystyle 10000$ goodwill A/c ½ By Revaluation $\displaystyle 9000$ $\displaystyle 6000$ A/c ½ By Bank/Cash $\displaystyle 230000$ A/c ½ $\displaystyle 454000$ $\displaystyle 336000$ $\displaystyle 230000$ $\displaystyle 454000$ $\displaystyle 336000$ $\displaystyle 230000$ Page $\displaystyle 10$ of $\displaystyle 20$ Working Notes: Calculation of proportionate capital Capital after adjustments Amount (₹) Asha $\displaystyle 354000$ $\displaystyle 1$ Indra $\displaystyle 336000$ $\displaystyle 690000$ Capital brought by Suraj= ($\displaystyle 690000$ x4/$\displaystyle 3$) x $\displaystyle 1$/$\displaystyle 4$ = ₹ $\displaystyle 2,30,000$