X,Y and Z are partners sharing profits and losses in the ratio 2:2:1. Their balance sheet as at 31st March, 2016 was as follows : Liabilities ₹ Assets ₹ Creditors 1,50,000 Cash 18,000 Outstanding Expenses 8,000 Debtors 1,00,000 Reserves 60,000 Less : Provision for doubtful Workmen’s Compensation Fund Debts 5,000 95,000 Capital A/cs: 25,000 Stock 1,40,000 X 4,00,000 Plant 1,50,000 Y 3,00,000 Buildings 6,00,000 Z 1,00,000 8,00,000 40,000 10,43,000 10,43,000 The partners agreed that from 1st April, 2016 they will share profits and losses equally. They agreed that : Stock is to be valued at 90%. Provision for doubt debts to be increased to 6% on debtors. Outstanding expenses are to be increased by ₹12,000. Building is to be valued at ₹7,00,000. Goodwill is valued at ₹1,20,000. Claim for Workmen’s Compensation is ₹40,000. Partners decided to record the altered values of assets and liabilities in the books. However they want to leave the reserve undistributed. You are required to prepare Revaluation Account, Capital Accounts of partners and revised balance sheet. (8) ***************
X,Y and Z are partners sharing profits and losses in the ratio 2:2:1. Their balance sheet as at 31st March, 2016 was as follows : Liabilities ₹ Assets ₹ Creditors Outstanding Expenses Reserves Workmen’s Compensation Fund Capital A/cs: X 4,00,000 Y 3,00,000 Z 1,00,000 1,50,000 8,000 60,000 25,000 8,00,000 Cash Debtors 1,00,000 Less : Provision for doubtful Debts 5,000 Stock Plant Buildings 18,000 95,000 1,40,000 1,50,000 6,00,000 40,000 10,43,000 10,43,000 The partners agreed that from 1st April, 2016 they will share profits and losses equally. They agreed that : Stock is to be valued at 90%. Provision for doubt debts to be increased to 6% on debtors. Outstanding expenses are to be increased by ₹12,000. Building is to be valued at ₹7,00,000. Goodwill is valued at ₹1,20,000. Claim for Workmen’s Compensation is ₹40,000. Partners decided to record the altered values of assets and liabilities in the books. However they want to leave the reserve undistributed. You are required to prepare Revaluation Account, Capital Accounts of partners and revised balance sheet. (8) ***************
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