Question

$A,B$ and $C$ were partners in a firm sharing profits in the ratio of $3:2:1$ . Their Balance Sheet as on $31st$ March, $2015$ was as follows :

Liabilities	Rs.	Assets	Rs.
Creditors	50,000	Land	50,000
Bills Payable	20,000	Building	50,000
General Reserve	30,000	Plant	1,00,000
Capital A/cs: $A$ 1,00,000 $B$ 50,000 $C$ 25,000	1,75,000	Stock	40,000
		Debtors	30,000
		Bank	5,000
	2,75,000		2,75,000

From $1st$ April, $2015,A,B$ and $C$ to share profits equally. For this it was agreed that :
(i) Goodwill of the firm will be valued at Rs. $1,50,000$
(ii) Land will be revalued at Rs. $80,000$ and building be depreciated by $6\%$
(iii) Creditors of Rs. $6,000$ were not likely to be claimed and hence should be written off.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm.

Answer 1

Revaluation A/c

Particulars (Dr.)	Amount	Particulars (Cr.)	Amount
To Building a/c To profit on revaluation A's capital a/c 16,500 B's capital a/c 11,000 C's capital a/c 5,500	3,000 33,000	By Land a/c By creditors a/c	30,000 6,000

Partners' Capital a/c

Particulars (Dr.)	A	B	C	Particulars (Cr.)	A	B	C
To A's capital a/c To balance c/d	1,56,500	71,000	25,000 10,500	By balance b/d By General reserve a/c By Revaluation a/c By C's capital a/c	1,00,000 15,000 16,500 25,000	50,000 10,000 11,000	25,000 5,000 5,500

Balance Sheet of A, B & C

Liabilities	Amount	Assets	Amount
Capital A 1,56,500 B 71,000 C 10,500 Creditors Bills Payable	2,38,000 44,000 20,000	Land Building Plant Stock Debtors Bank	80,000 47,000 1,00,000 40,000 30,000 5,000