Question

Ram, Kishan and Gopal were partners sharing profits in the ratio of 4 : 2 : 1 respectively.

Following was their Balance Sheet as on 31st March 2013.

BALANCE SHEET
as on 31st March 2013
$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{Capitals :}& & \text{Cash}& 14,000\\ \text{Ram}& 60,000& \text{Stock}& 30,000\\ \text{Kishan}& 40,000& \text{Debtors}& 22,000\\ \text{Gopal}& 30,000& \text{Building}& 40,000\\ \text{Creditors}& 30,000& \text{Plant}& 53,000\\ \text{Bills Payable}& 4,000& \text{Motor Van}& 26,000\\ \text{General Reserve}& 21,000& & \\ & \overline{1,85,000}& & \overline{1,85,000}\end{array}$

On the above date, Ram retired and following adjustments were agreed:

(i) The assets and liabilities were valued as : Stock Rs 24,000, Debtors Rs 21,000, Building Rs 45,200, Plant Rs 50,000 and Creditors Rs 28,000.

(ii) Amount due to Ram will be transferred to Ram's loan account.

Prepare Revaluation Account and Ram's Capital Account.

Answer 1

Dr. REVALUATION ACCOUNT Cr.
$\begin{array}{ccccc}\text{Particulars}& \text{Amount}& \text{Particulars}& & \text{Amount}\\ & \text{(Rs)}& & & \text{(Rs)}\\ \text{To Stock A/c}& 6,000& \text{By Building A/c}& & 5,200\\ \text{To Debtors A/c}& 1,000& \text{By Creditors A/c}& & 2,000\\ \text{To Plan A/c}& 3,000& \text{By Loss on Revaluation}& & \\ & & \text{Transferred to :}& & \\ & & \text{Ram's Capital A/c}& 1,600& \\ & & \text{Kishan's Capital A/c}& 800& \\ & & \text{Gopal's Capital A/c}& \underset{–}{400}& 2,800\\ & \overline{10,000}& & & \overline{10,000}\end{array}$

Dr. RAM'S CAPITAL ACCOUNT Cr.
$\begin{array}{cccc}\text{Particulars}& \text{Amount}& \text{Particulars}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{To Revaluation A/c (Loss)}& 1,600& \text{By Balance b/d}& 60,000\\ \text{To Ram's Loan A/c (Balance Fig.)}& 70,400& \text{By General Reserve}(\text{Rs}21,000\times 4/7)& 12,000\\ & \overline{72,000}& & \overline{72,000}\end{array}$