That land and building be brought up to 1,19,700. ` That the goodwill is valued at 28,140. ` That D should bring in 35,400 as his capital ` After makingthe aboveadjustmentsthecapital ofoldpartnersbe adjustedinproportion to D's Capital by bringing in cash or excess to be paid off. D's Capital by bringing in cash or excess to be paid off. Prepare Revaluation Account, Capital Account of Partners and balance Sheet of new firm. Solution : Revaluation Account Particulars ` ` By Land and To furniture A/c 1,840 BuildingA/c To stock A/c 5,880 To O/S repairs A/c 2,640 To capital A/cs : A 6/14 8,160 B 5/14 6,800 C 3/14 4,080 Partners' CapitalAccount Particulars A (`) B (`) C (`) D (`) Particulars A (`) B (`) C (`) D (`) By Balance To Goodwill 4,500 3,750 2,250 b/d70,800 59,700 – – To A's capital 1,508 By General 9,000 7,500 4,500 – – – – To B's capital 1,256 reserve 8,160 6,800 4,080 – – – – To C's capital 754 By 35,400 – – – – – – To Balance c/d 84,968 71,506 38,184 31,882 A/c 1,508 1,256 754 – 89,468 75,256 38,434 35,400 By cash A/c 8 75,256 35,400 To balance By D's c/d 95,646 79,705 47,823 31,882 Capital By balance b/d 84,968 71,506 31,382 By cash A/c 8,199 – 95,646 79,705 47,823 31,882 79,705 3 31,882 Balance Sheet of the New Firm Liabilities Assets ` ` Creditors 37,800 Cash
That land and building be brought up to ` 1,19,700. That the goodwill is valued at ` 28,140. That D should bring in ` 35,400 as his capital After makingthe aboveadjustmentsthecapital ofoldpartnersbe adjustedinproportion to D's Capital by bringing in cash or excess to be paid off. D's Capital by bringing in cash or excess to be paid off. Prepare Revaluation Account, Capital Account of Partners and balance Sheet of new firm. Solution : Revaluation Account Particulars ` ` To furniture A/c 1,840 By Land and BuildingA/c To stock A/c 5,880 To O/S repairs A/c 2,640 To capital A/cs : A 6/14 8,160 B 5/14 6,800 C 3/14 4,080 Partners' CapitalAccount Particulars A (`) B (`) C (`) D (`) Particulars A (`) B (`) C (`) D (`) To Goodwill 4,500 3,750 2,250 – By Balance b/d70,800 59,700 – To A's capital – – – 1,508 By General 9,000 7,500 4,500 – To B's capital – – – 1,256 reserve 8,160 6,800 4,080 – To C's capital – – – 754 By – – – 35,400 To Balance c/d 84,968 71,506 38,184 31,882 A/c 1,508 1,256 754 – 89,468 75,256 38,434 35,400 By cash A/c 75,256 35,400 To balance c/d 95,646 79,705 47,823 31,882 By D's Capital By balance b/d 84,968 71,506 31,382 By cash A/c 8,199 – 95,646 79,705 47,823 31,882 79,705 31,882 Liabilities Balance Sheet of the New Firm Assets ` ` Creditors 37,800 Cash 3 8