omtexclasses.com: Following is the balance sheet of Harish and Girish:

Balance Sheet as on 31^st March, 2010

They admitted Shirish on 1^st April, 2010 on the following conditions:

1. For his 1/3 rd share in the future profits, Shirish brings Rs. 2,00,000 as his capital.

2. It is decided to raise goodwill by Rs. 90,000 and write off fully after Shirish's Admission.

3. Equipments and Plant are to be depreciated by 20% and 10 % respectively and Building is to be appreciated by 15%.

4. Bills Payable were retired for Rs. 35,000.

5. All debtors are to be considered good.

6. Furniture of the book value Rs. 12,000 was taken over by Harish at 40% of the book value.

Prepare, Revaluation A/c. Partners' Capital A/c and Balance Sheet of the new firm.

Solution:

In the books of Partnership firm.

Revaluation A/c

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Equipment A/c		2400	By Buildings A/c		18000
To Plant A/c		8500	By Bills Payable A/c [Rebate Earned]		11000
To Furniture A/c		7200	By R.D.D. A/c		6000
To Partners' Capital A/c (Profit)
Harish	8450
Girish	8450	16900
		35000			35000

Partner's capital Accounts

Balance Sheet as on 1^st April, 2013

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