CBSE 2025, Set 2

Question

(b) Arti, Bharti and Gayatri were partners in a firm sharing profits and losses in ratio of 5:3:2. Their Balance Sheet as at 31st March, 2024 was a follows:
| Liabilities | Amount (₹) | Assets | Amount (₹) | |---|---|---|---| | Creditors | 1,50,000 | Cash at Bank | 1,30,000 | | General Reserve | 1,30,000 | Debtors | 70,000 | | Employees' Provident Fund | 25,000 | Stock | 1,05,000 | | Workmen Compensation Fund | 75,000 | Machinery | 1,40,000 | | Capitals: | | Building | 2,00,000 | | Arti 2,00,000 | | Patents | 5,000 | | Bharti 1,00,000 | | Profit and Loss A/c | 80,000 | | Gayatri 50,000 | 3,50,000 | | | | **Total** | **7,30,000** | **Total** | **7,30,000** |

On the above date, Arti retired from the firm on the following terms:
(i) Goodwill of the firm was valued at ₹3,00,000.
(ii) A provision of 5% for doubtful debts was to be created on debtors.
(iii) Machinery was to be depreciated by 10% and building was to be appreciated by ₹22,500.
(iv) Patents were considered as valueless and hence had to be written off.
(v) A claim of ₹15,000 was admitted for workmen compensation.

Prepare Revaluation Account and Partners' Capital Accounts on Arti's retirement.

Edvaya · Accepted Answer

The correct answer is Subjective. **Revaluation A/c** | Dr. Particulars | Amount (₹) | Cr. Particulars | Amount (₹) | |---|---|---|---| | To Provision for doubtful debts (5% of 70k) | 3,500 | By Building A/c | 22,500 | | To Machinery A/c (10% of 1.4L) | 14,000 | | | | To Patents A/c | 5,000 | | | | **Total** | **22,500** | **Total** | **22,500** | *(No profit or loss on revaluation as debit equals credit).* **Partners' Capital Accounts** | Dr. Particulars | Arti (₹) | Bharti (₹) | Gayatri (₹) | Cr. Particulars | Arti (₹) | Bharti (₹) | Gayatri (₹) | |---|---|---|---|---|---|---|---| | To P&L A/c (5:3:2) | 40,000 | 24,000 | 16,000 | By Balance b/d | 2,00,000 | 1,00,000 | 50,000 | | To Arti's Capital (GW) | - | 90,000 | 60,000 | By Bharti/Gayatri (GW) | 1,50,000 | - | - | | To Arti's Loan A/c | 4,05,000 | - | - | By General Reserve | 65,000 | 39,000 | 26,000 | | To Balance c/d | - | 43,000 | 12,000 | By WCF (75k-15k) | 30,000 | 18,000 | 12,000 | | **Total** | **4,45,000** | **1,57,000** | **88,000** | **Total** | **4,45,000** | **1,57,000** | **88,000** | *Working Note for Goodwill:* Arti's share = 3,00,000 × 5/10 = 1,50,000. Gaining ratio of Bharti and Gayatri = 3:2. Bharti compensates 90,000, Gayatri compensates 60,000.

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Accountancy > Accounting For Partnership Firms > Retirement Of A Partner

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Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	1,50,000	Cash at Bank	1,30,000
General Reserve	1,30,000	Debtors	70,000
Employees' Provident Fund	25,000	Stock	1,05,000
Workmen Compensation Fund	75,000	Machinery	1,40,000
Capitals:		Building	2,00,000
Arti 2,00,000		Patents	5,000
Bharti 1,00,000		Profit and Loss A/c	80,000
Gayatri 50,000	3,50,000
Total	7,30,000	Total	7,30,000