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Chapter 6 Retirement of a Partner 6.17
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BALANCE SHEET OF A AND B (NEW FIRM) as at 1st April, 2018
Liabilities ` Assets `
Capital A/cs: Building (` 5,00,000 + ` 1,00,000) 6,00,000
A 8,24,400 Plant (` 4,00,000 – ` 40,000) 3,60,000
B 5,99,600 14,24,000 Furniture (` 40,000 – ` 6,000) 34,000
Creditors 2,05,000 Stock 2,50,000
Debtors 3,00,000
Less: Provision for Doubtful Debts 15,000 2,85,000
Bank 1,00,000
16,29,000 16,29,000
Solution:
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Plant A/c 40,000 By Building A/c 1,00,000
To Furniture A/c 6,000
To Provision for Doubtful Debts A/c 15,000
To Partners’ Capital A/cs (Gain):
A (` 39,000 × 3/6) 19,500
B (` 39,000 × 2/6) 13,000
C (` 39,000 × 1/6) 6,500 39,000
1,00,000 1,00,000

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 35,000 By C’s Capital A/c 3,61,500
To A’s Capital A/c 2,55,900 By Balance c/d 1,00,000
To B’s Capital A/c 1,70,600
4,61,500 4,61,500

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To Bank A/c 3,61,500 By Balance b/d 4,50,000 3,50,000 2,50,000
To C’s Capital A/c 36,000 24,000 By Reserves and Surplus 75,000 50,000 25,000
(Goodwill) By Profit and Loss A/c 60,000 40,000 20,000
To Balance c/d 8,24,400 5,99,600 By A’s Capital A/c 36,000
By B’s Capital A/c 24,000
By Revaluation A/c 19,500 13,000 6,500
By Bank A/c 2,55,900 1,70,600
8,60,400 6,23,600 3,61,500 8,60,400 6,23,600 3,61,500

BALANCE SHEET OF A AND B (NEW FIRM) as at 1st April, 2018
Liabilities ` Assets `
Capital A/cs: Building (` 5,00,000 + ` 1,00,000) 6,00,000
A 8,24,400 Plant (` 4,00,000 – ` 40,000) 3,60,000
B 5,99,600 14,24,000 Furniture (` 40,000 – ` 6,000) 34,000
Creditors 2,05,000 Stock 2,50,000
Debtors 3,00,000
Less: Provision for Doubtful Debts 15,000 2,85,000
Bank 1,00,000
16,29,000 16,29,000