Sanju and Manju were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. Their Balance Sheet on 31st March, $\displaystyle 2023$ was as follows : Balance Sheet of Sanju and Manju as at 31st March, $\displaystyle 2023$ Amount Amount Liabilities Assets < < Capitals : Plant and Machinery $\displaystyle 80,000$ Sanju $\displaystyle 1,40,000$ Furniture $\displaystyle 1,32,000$ Manju $\displaystyle 1,20,000$ $\displaystyle 2,60,000$ Investments $\displaystyle 60,000$ General Reserve $\displaystyle 40,000$ Debtors $\displaystyle 76,000$ Less : Provision Creditors $\displaystyle 1,80,000$ for doubtful debts ₹ $\displaystyle 4,000$ $\displaystyle 72,000$ Cash at Bank $\displaystyle 1,36,000$ $\displaystyle 4,80,000$ $\displaystyle 4,80,000$ 1th On 1st April, $\displaystyle 2023$, Uday was admitted into the firm for share $\displaystyle 4$ in profits on the following terms : (i) Furniture was to be depreciated by ₹ $\displaystyle 6$,000. (ii) Investments were valued at ₹ $\displaystyle 72$,000. (iii) Plant and Machinery was taken over by Sanju and Manju in their profit sharing ratio. (iv) Uday will bring in proportionate capital and ₹ $\displaystyle 10,000$ as his share of goodwill premium in cash. Prepar e Revaluation Account and Partners' Capital Accounts.

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Ravi, Tanu and Sara were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. Ravi retired from the firm due to his illness on 31st March, 2023. The Balance Sheet of the firm on that date was as follows : Balance Sheet of Ravi, Tanu and Sara as at 31st March, $\displaystyle 2023$ Amount Amount Liabilities Assets < < Capitals : Fixed Assets $\displaystyle 1,20,000$ Ravi $\displaystyle 80,000$ Stock $\displaystyle 1,60,000$ Tanu $\displaystyle 1,24,000$ Debtors $\displaystyle 2,00,000$ Sara $\displaystyle 66,000$ $\displaystyle 2,70,000$ Cash in hand $\displaystyle 80,000$ Profit and Loss $\displaystyle 1,70,000$ Employees' Provident Fund $\displaystyle 20,000$ Creditors $\displaystyle 1,00,000$ $\displaystyle 5,60,000$ $\displaystyle 5,60,000$ Additional Information : (i) Creditors included a sum of ₹ $\displaystyle 4,000$ which was not likely to be claimed. (ii) A provision of $\displaystyle 5$% for doubtful debts was to be created on debtors. (iii) Goodwill of the firm was valued at ₹ $\displaystyle 1,60$,000. (iv) Fixed Assets were found overvalued by ₹ $\displaystyle 5$,000. (v) New profit sharing ratio of Tanu and Sara was agreed at $\displaystyle 2$ : 3. (vi) The amount due to Ravi was transferred to his loan account. Prepare Revaluation Account and Partners' Capital Accounts on Ravi's retirement.

Dr. Revaluation A/c Cr. Particulars Amount Particulars Amount To Furniture A/c (½) $\displaystyle 6,000$ By Investments A/c (½) $\displaystyle 12,000$ To Profit transferred to Partners’ Capital Accounts: (½) Sanju $\displaystyle 3,600$ Manju $\displaystyle 2,400$ $\displaystyle 6,000$ $\displaystyle 12,000$ $\displaystyle 12,000$ ($\displaystyle 2023$-$\displaystyle 24$) $\displaystyle 67$/$\displaystyle 2$/$\displaystyle 3$ Page $\displaystyle 12$ of Dr. Partners’ Capital A/c Cr. Particulars Sanju Manju Uday Particulars Sanju Manju Uday To Plant & $\displaystyle 48,000$ $\displaystyle 32,000$ - By Balance b/d (½) $\displaystyle 1,40,000$ $\displaystyle 1,20,000$ - Machinery (½) By Cash A/c ($\displaystyle 1$) - - $\displaystyle 78,667$ To Balance c/d $\displaystyle 1,25,600$ $\displaystyle 1,10,400$ $\displaystyle 78,667$ By Premium for (½) Goodwill A/c ($\displaystyle 1$) $\displaystyle 6,000$ $\displaystyle 4,000$ - By Revaluation A/c (½) $\displaystyle 3,600$ $\displaystyle 2,400$ - By General Reserve A/c (½) $\displaystyle 24,000$ $\displaystyle 16,000$ - $\displaystyle 1,73,600$ $\displaystyle 1,42,400$ $\displaystyle 78,667$ $\displaystyle 1,73,600$ $\displaystyle 1,42,400$ $\displaystyle 78,667$ Working notes: Calculation of Uday’s Capital: Combined capital of Sanju and Manju= $\displaystyle 1,25,600$+ $\displaystyle 1,10,400$= ₹$\displaystyle 2,36,000$ Capital brought by Uday= $\displaystyle 2,36,000$ X $\displaystyle 4$/$\displaystyle 3$ X $\displaystyle 1$/$\displaystyle 4$ = ₹$\displaystyle 78,667$ Q.(b) Ravi, Tanu and Sara were partners.............................. Ans. Dr. Revaluation A/c Cr. Particulars Amount Particulars Amount To Provision for doubtful $\displaystyle 10,000$ By Creditors A/c $\displaystyle 4,000$ debts A/c By Loss transferred to Partners’ To Fixed Assets A/c $\displaystyle 5,000$ Capital Accounts: (½) (½) Ravi $\displaystyle 5,500$ Tanu $\displaystyle 3,300$ Sara $\displaystyle 2,200$ $\displaystyle 11,000$ $\displaystyle 15,000$ $\displaystyle 15,000$ Dr. Partners’ Capital A/c Cr. Particulars Ravi Tanu Sara Particulars Ravi Tanu Sara To Revaluation A/c (½) $\displaystyle 5,500$ $\displaystyle 3,300$ $\displaystyle 2,200$ By Balance b/d (½) $\displaystyle 80,000$ $\displaystyle 1,24,000$ $\displaystyle 66,000$ To Ravi’s Capital A/c By Tanu’s (½) - $\displaystyle 16,000$ $\displaystyle 64,000$ Capital A/c $\displaystyle 16,000$ - - To Ravi’s Loan A/c ($\displaystyle 1$) $\displaystyle 2,39,500$ - - By Sara’s (½) To Balance c/d (½) - $\displaystyle 1,55,700$ $\displaystyle 33,800$ Capital A/c $\displaystyle 64,000$ - - By Profit & Loss A/c $\displaystyle 85,000$ $\displaystyle 51,000$ $\displaystyle 34,000$ $\displaystyle 2,45,000$ $\displaystyle 1,75,000$ $\displaystyle 1,00,000$ $\displaystyle 2,45,000$ $\displaystyle 1,75,000$ $\displaystyle 1,00,000$ Working Notes: Gaining Share= New share - Old share Tanu = $\displaystyle 2$/$\displaystyle 5$ - $\displaystyle 3$/$\displaystyle 10$ = $\displaystyle 1$/$\displaystyle 10$ (Gain) Sara = $\displaystyle 3$/$\displaystyle 5$ - $\displaystyle 2$/$\displaystyle 10$ = $\displaystyle 4$/$\displaystyle 10$ (Gain) Gaining ratio of Tanu & Sara = $\displaystyle 1$: $\displaystyle 4$