Question

Following is the Balance Sheet of $A$ and $B$ , who shared Profits and Losses in the ratio $2:1$ as at $1st$ April, $2018$ :

Liabilities	Rs.	Assets	Rs.
Capital A/cs $A$ 3,00,000 $B$ 2,00,000	5,00,000	Land and Buildings	2,90,000
Reserve	1,50,000	Furniture	80,000
Creditors	2,00,000	Stock	2,40,000
		Debtors	1,50,000
		Bank	60,000
		Cash	30,000
	8,50,000		8,50,000

On the above date, the partners changed their profit-sharing ratio to $3:2$ . For this purpose, the goodwill of the firm was valued at Rs. $3,00,000$ . The partners also agreed for the following :
(a) The value of Land and Building will be Rs. $5,00,000$ ;
(b) Reserve is to be maintained at Rs. $3,00,000$
(c) The total capital of the partners in the new firm will be Rs. $6,00,000$ , which will be shared by the partners in their new profit sharing ratio.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

Answer 1

Revaluation A/c

Particulars	Amt.	Particulars	Amt.
To Partner's Capital A/c:	210000	By Land and Bldg A/c	210000
A 140000
B 70000
	210000		210000

Partner's Capital A/c

Particulars	A	B	Particulars	A	B
To Reserve A/c	180000	120000	By bal b/d	300000	200000
To A's Capital A/c		20000	By Revaluation A/c	140000	70000
To Cash A/c	20000		By Reserve A/c	100000	50000
To Bal c/d	360000	240000	By B's Capital A/c (goodwill)	20000
			By Cash A/c		60000
	560000	380000		560000	380000

Balance Sheet

Liabilities	Amount	Assets	Amount
Capital A/cs: A - 360000 B - 240000	600000	Land and Building	500000
Reserves	300000	Furiniture	80000
Creditors	200000	Stock	240000
		Debtor	150000
		Cash	70000
		Bank	60000
	1100000		1100000

Workings:

A's sacrificing ratio: 3/5 - 2/3 = (1/15)