Following is the balance sheet of the firm Sonu, Monu and Piyu who share profits and losses in the ratio of their capital.

Solution: In the  books of Sonu, Monu and Piyu

Profit and Adjustment A/c

Particulars	Amount	Amount	Particulars	Amount	Amount
To Stock A/c		960	By Land and Building A/c		11000
To R.D.D. A/c		200
To Profit on Revaluation Transferred to partners Capital A/c
Sonu Capital A/c	4920
Monu Capital A/c	1968
Piyu Capital A/c	2952	9840
		11000			11000

Partners’ Capital A/c

Particulars	Sonu	Monu	Piyu	Particulars	Sonu	Monu	Piyu
To Goodwill A/c (5:1)	3000	600	-	By Balance b/d	50000	20000	30000
To Cash A/c			36552	By Profit and Loss Adjustment A/c [Profit on Revaluation]	4920	1968	2952
				By Goodwill A/c			3600
				By Cash A/c	68080	18632	-
To Balance C/d	120000	40000
	123000	40600	36552		123000	40600	36552

In the books of M/s Sonu and Monu.

Balance Sheet as on 1st April, 2013.

Liabilities	Amount	Amount	Assets	Amount	Amount
Creditors		15000	Plant and Machinery		20000
Capital A/c			Land and Building	55000
Sonu	120000		Add: Appreciation	11000	66000
Monu	40000	160000	Stock	12000
			Less: Written off	960	11040
			Debtors	12000
			Less: R.D.D.	1200	10800
			Cash		67160
		175000			175000