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4. RDD to be increased up to ` 4,000.
5 The old partners decided to retain half of the amount of goodwill in the business.
6 Sundry creditors should be revalued at ` 66,000
Give Revaluation Account, Capitals Accounts and Balance Sheet of New firm,
Solution :
In the books of Partnership firm
Dr. Revaluation Account Cr.

Particular Amount (`) Particular Amount (`)
To Plant and Machinery 12,000 By Building A/c 28,000
To RDD A/c 2,000
To Sundry Creditors A/c 6,000
To Profit on Revaluation
transferred to Capital A/c
Madhuri 4,800
Manisha 3,200
28,000 28,000

Dr. Partner’s Capital Account Cr.

Particular Madhuri Manisha Mohini Particulars Madhuri Manisha Mohini
(`) (`) (`) (`) (`) (`)
To Bank 10,000 10,000 By Balance b/d 80,000 1,00,000
To Balance c/d 94,800 1,13,200 1,00,000 By Bank A/c 20,000 1,00,000
By Goodwill A/c 20,000
By Revaluation A/c 4,800 3,200
(Profit)

1,04,800 1,23,200 1,00,000 1,04,800 1,23,200 1,00,000

Balance Sheet of Madhuri, Manisha & Mohini as on 1 April, 2019
st
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital Account Building 72,000
Madhuri 94,800 Add: Appreciation 28,000 1,00,000
Manisha 1,13,200 Plant & Machinary 60,000
Mohini 1,00,000 Less Depreciation 12,000 48,000
Sundry Creditor 66,000 Furniture 10,000
Bills Payable 10,000 Sundry Debtors 42,000
Less: R.D.D. 4,000 38,000
Stock 48,000
Bank 1,40,000
3,84,000 3,84,000

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