And B are partners sharing profits in the ratio of 3:2. On 1st April, 2019, their Balance Sheet was as follows:Liabilities ₹ Assets ₹Sundry Creditors 51,000 Goodwill 15,000Workmen Compensation Fund4,000 Plant 75,000Capitals:A: 1,10,000B: 1,20,000 2,20,000Patent 8,000Stock 80,000Debtors 62,000cash 20,000Profit and Loss A/c 15,000275,000 2,75,000On this date they admitted C on the following terms:i) C will get 3/10th share in profits which he acquires 1/5th from A and 1/10 from B, he will bring in ₹20,000 as his capital.ii) Goodwill of the firm be valued at ₹40,000.iii) Plant is valued at ₹60,000 and Stock 70,000iv) Claim over workmen compensation is ₹6,000v) Patents should be written off.vi) Investments of Rs.5,000 which did not appear in books of account should be duly recorded.vii) B is to withdraw ₹20,000 in cash for persona use.Prepare Revaluation

And B are partners sharing profits in the ratio of 3:2. On 1st April,

1.	And B are partners sharing profits in the ratio of 3:2. On 1st April, 2019, their Balance Sheet was as follows:Liabilities ₹ Assets ₹Sundry Creditors 51,000 Goodwill 15,000Workmen Compensation Fund4,000 Plant 75,000Capitals:A: 1,10,000B: 1,20,000 2,20,000Patent 8,000Stock 80,000Debtors 62,000cash 20,000Profit and Loss A/c 15,000275,000 2,75,000On this date they admitted C on the following terms:i) C will get 3/10th share in profits which he acquires 1/5th from A and 1/10 from B, he will bring in ₹20,000 as his capital.ii) Goodwill of the firm be valued at ₹40,000.iii) Plant is valued at ₹60,000 and Stock 70,000iv) Claim over workmen compensation is ₹6,000v) Patents should be written off.vi) Investments of Rs.5,000 which did not appear in books of account should be duly recorded.vii) B is to withdraw ₹20,000 in cash for persona use.Prepare Revaluation
Answer» Please mark me in brain listExplanation:(i) JOURNAL 1. Cash a/c... Dr. 10500 To C's Capital a/c 7500 To Premium for goodwill a/c 3000 (Being capital and premium for goodwill brought in by C) 2. Premium for goodwill a/c... Dr. 3000 To A's Capital a/c 2000 To B's Capital a/c 1000 (Being premium for goodwill distributed among the partners in the ratio of 2:1) 3. Building a/c... Dr. 2500 To Revaluation a/c 2500 (Being increase in asset TRANSFERRED to revaluation account) 4. Revaluation a/c.... Dr. 1750 To Plant and Machinery a/c 875 To Stock a/c 500 To Provision for doubtful debts a/c 375 (Being decrease in assets and increase in liabilities transferred to revaluation account) 5. Revaluation a/c... Dr. 750 To A's Capital a/c 500 To B's Capital a/c 250 (Being profit on revaluation transferred to the partner's capital accounts) (ii) REVALUATION A/C Dr. Cr. Particulars Amount (in RS.) Particulars Amount (in Rs.) To Stock a/c 500 By Building a/c 2500 To Plant and Machinery a/c 875 To Provision for doubtful debts a/c 375 To Profit transferred to - A's Capital a/c - B's Capital a/c 500 250 TOTAL 2500 TOTAL 2500 (iii) PARTNER'S CAPITAL A/C Particulars A B C Particulars A B C By Balance b/d 15000 10000 - By Cash a/c - - 7500 To Balance c/d 17500 11250 7500 By Premium for goodwill a/c 2000 1000 - By Revaluation a/c 500 250 - (iv) BALANCE SHEET (after ADMISSION of C) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Building (25000+2500) 27500 Capital - A - B - C 17500 11250 7500 Plant and Machinery (17500-875) 16625 Sundry Creditors 32950 Stock (10000-500) 9500 Debtors 4850 -- Provision for Doubtful debts (375) 4475 Cash (600+10500) 11100 TOTAL 69200 TOTAL 69200

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