Gautam and Yashica are partners in a firm, sharing profits and losses in 3: 1 respectively. The Balance Sheet of the firm as on 31st March, 2018 was as follows:

BALANCE SHEET as at 31st March, 2018

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)
Sundry Creditors50,000Furniture 60,000
Bills Payable30,000 Stock1,40,000
 Capitals: Debtors80,000
Gautamn4,00,000Cash in Hand90,000
Yashica 1,00,0005,00,000Machinery2,10,000

Asma is admitted as a partner for 3/8th share in the profits with a capital of Rs. 2,10,000 and Rs. 50,000 for her share of goodwill. It was decided that:
(i) New profit-sharing ratio will be 3: 2: 3.
(ii) Machinery will depreciated by 10% and Furniture by Rs. 5,000.
(iii) Stock was revalued at Rs. 2,10,000.
(iv) Provision for doubtful debts is to be created at 10% of debtors.
(v) The capitals of all the partners were to be in the new profit-sharing ratio on basis of capital of new partner. Any adjustment to be done through Current Accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm. (CBSE Sample Paper 2021)


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