CBSE 2023 · Region 3 · Set 2 · Q23

On 31st March, $\displaystyle 2022$ the Balance Sheet of partners A and B, who were sharing profits in the ratio of $\displaystyle 3$ : $\displaystyle 2$ was as follows : Balance Sheet of A and B as at 31st March, $\displaystyle 2022$ Amount Amount Liabilities Assets < < Creditors $\displaystyle 30,000$ Cash at Bank $\displaystyle 20,000$ Investment $\displaystyle 12,000$ Debtors $\displaystyle 85,000$ Fluctuation Fund Less General Reserve $\displaystyle 25,000$ $\displaystyle 80,000$ provision $\displaystyle 5,000$ Capitals : Stock $\displaystyle 1,30,000$ A $\displaystyle 1,60,000$ Investments $\displaystyle 60,000$ B $\displaystyle 1,40,000$ $\displaystyle 3,00,000$ Furniture $\displaystyle 77,000$ $\displaystyle 3,67,000$ $\displaystyle 3,67,000$ On 1st April $\displaystyle 2022$, they decided to admit C as a new partner for $\displaystyle 1$ share in the profits on the following terms : $\displaystyle 5$ (i) C brought ₹ $\displaystyle 1,00,000$ as his Capital and ₹ $\displaystyle 50,000$ as his share of Premium for Goodwill. (ii) One month salary ₹ $\displaystyle 2,000$ was outstanding. (iii) The market value of investments was ₹ $\displaystyle 50$,000. (iv) A debtor, whose dues were written off as bad debts, paid ₹ $\displaystyle 12,000$ in full settlement. Prepare Revaluation Account and Partners Capital Accounts.

OR

Anita, Geeta and Sita were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : 1. Their Balance Sheet as at 31st March, $\displaystyle 2022$ was as follow : Balance Sheet of Anita, Geeta and Sita as at 31st March, $\displaystyle 2022$ Amount Amount Liabilities Assets < < Capitals : Land and Building $\displaystyle 4,80,000$ Anita $\displaystyle 2,00,000$ Investments $\displaystyle 1,20,000$ Geeta $\displaystyle 2,00,000$ Debtors $\displaystyle 1,50,000$ Sita $\displaystyle 1,00,000$ $\displaystyle 5,00,000$ Less General Reserve $\displaystyle 30,000$ Provision $\displaystyle 10,000$ $\displaystyle 1,40,000$ Stock Creditors $\displaystyle 5,00,000$ $\displaystyle 1,20,000$ Cash at Bank $\displaystyle 1,70,000$ $\displaystyle 10,30,000$ $\displaystyle 10,30,000$ On the above date, Anita retired from the firm and the remaining partners decided to carry on the business. It was agreed to revalue the assets and reassess the liabilities as follows : (i) Goodwill of the firm was valued at ₹ $\displaystyle 3,00$,000. (ii) Land and Building was to be appreciated by ₹ $\displaystyle 1,23$,000. (iii) Bad debts amounted to ₹ $\displaystyle 20$,000. A provision for doubtful debts was to be maintained at $\displaystyle 10$% on debtors. (iv) Anita was paid ₹ $\displaystyle 80,000$ immediately by cheque. The balance amount was transferred to her loan account which was to be paid in two equal annual instalments along with interest @ $\displaystyle 10$% p.a. Prepare Revaluation Account and Partners' Capita l Accounts on Anita's retirement.