Balance Sheet of X and Y, who share profits and losses as 5 : 3, as at 1st April, 2019 is:
|
|
Liabilities |
Amount
(₹) |
Assets |
Amount
(₹) |
X's Capital |
52,000 |
Goodwill |
8,000 |
Y's Capital |
54,000 |
Machinery |
38,000 |
General Reserve |
4,800 |
Furniture |
15,000 |
Sundry Creditors |
5,000 |
Sundry Debtors |
33,000 |
Employees' Provident Fund |
1,000 |
Stock |
7,000 |
Workmen Compensation Reserve |
10,000 |
Bank |
25,000 |
|
|
Advertisement Suspense A/c |
800 |
|
|
|
|
|
1,26,800 |
|
1,26,800 |
|
|
|
|
On the above date, they decided to change their profit-sharing ratio to 3 : 5 and agreed upon the following:
(a) Goodwill be valued on the basis of two years' purchase of the average profit of the last three years. Profits for the years ended 31st March, are: 2016-17 − ₹ 7,500; 2017-18 − ₹ 4,000; 2018-19 − ₹ 6,500.
(b) Machinery and Stock be revalued at ₹ 45,000 and ₹ 8,000 respectively.
(c) Claim on account of workmen compensation is ₹ 6,000.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.