A, B, C, and D were partners in a firm sharing profits in the ratio of 3:2:3:2. On 1/4/2016, their Balance Sheet was as follows:<p></p> <p>Balance Sheet of A, B, C, and D as on 1/4/2016</p> <table> <thead> <tr> <th>Liabilities</th> <th>Amount (Rs)</th> <th>Assets</th> <th>Amount (Rs)</th> </tr> </thead> <tbody><tr> <td>Capital:</td> <td></td> <td>Fixed Assets</td> <td>8,25,000</td> </tr> <tr> <td>A</td> <td>2,00,000</td> <td>Current Assets</td> <td>3,00,000</td> </tr> <tr> <td>B</td> <td>2,50,000</td> <td></td> <td></td> </tr> <tr> <td>C</td> <td>2,50,000</td> <td></td> <td></td> </tr> <tr> <td>D</td> <td>3,10,000</td> <td></td> <td></td> </tr> <tr> <td></td> <td>10,10,000</td> <td></td> <td></td> </tr> <tr> <td>Sundary Creditors</td> <td>90,000</td> <td></td> <td></td> </tr> <tr> <td>Workmen Compensation Reserve</td> <td>25,000</td> <td></td> <td></td> </tr> <tr> <td></td> <td>11,25,000</td> <td></td> <td>11,25,000</td> </tr> </tbody></table> <p>From the above date, partners decided to share future profits in the ratio of 4:3:2:1. For this purpose, the goodwill of the firm was valued at Rs. 2,70,000. It was also considered that:</p> <p>(i) The claims against Workmen Compensation Reserve has been estimated at Rs. 30,000, and fixed assets will be depreciated by Rs. 25,000.<br />(ii) Adjust the capitals of the partners according to the new profit-sharing ratio by opening Current Accounts of the partners.</p> <p>Prepare Revaluation Account, Partner's Capital Accounts, and Balance Sheet of the reconstituted firm.</p>

A, B, C, and D were partners in a firm sharing profits in the ratio of 3:2:3:2. On 1/4/2016, their Balance Sheet was as follows:

Balance Sheet of A, B, C, and D as on 1/4/2016

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital:		Fixed Assets	8,25,000
A	2,00,000	Current Assets	3,00,000
B	2,50,000
C	2,50,000
D	3,10,000
	10,10,000
Sundary Creditors	90,000
Workmen Compensation Reserve	25,000
	11,25,000		11,25,000

From the above date, partners decided to share future profits in the ratio of 4:3:2:1. For this purpose, the goodwill of the firm was valued at Rs. 2,70,000. It was also considered that:

(i) The claims against Workmen Compensation Reserve has been estimated at Rs. 30,000, and fixed assets will be depreciated by Rs. 25,000.
(ii) Adjust the capitals of the partners according to the new profit-sharing ratio by opening Current Accounts of the partners.

Prepare Revaluation Account, Partner's Capital Accounts, and Balance Sheet of the reconstituted firm.

Revaluation Account

Particulars	Amount (Rs)	Particulars	Amount (Rs)
Workmen Compensation Reserve (30,000 - 25,000)	5,000	Fixed Assets (Depreciation)	25,000
Goodwill	2,70,000

Total	2,75,000	Total	25,000
		Balance c/d	2,50,000

Partner's Capital Accounts

Particulars	A (Rs)	B (Rs)	C (Rs)	D (Rs)
Balance b/d	2,00,000	2,50,000	2,50,000	3,10,000
Share of Goodwill	1,08,000	81,000	54,000	27,000
(2,70,000 * 4/10)
(2,70,000 * 3/10)
(2,70,000 * 2/10)
(2,70,000 * 1/10)
Share of Revaluation	12,500	12,500	12,500	12,500
Profit (2,50,000/4)
Total	3,20,500	3,43,500	3,16,500	3,49,500
Total capital required	3,60,000	2,70,000	1,80,000	90,000
(2,50,000 * 4/10, 3/10, 2/10, 1/10)
Current A/c	39,500	(73,500)	(136,500)	(259,500)
Total	3,60,000	2,70,000	1,80,000	90,000

Balance Sheet of Reconstituted Firm

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital A/c:		Fixed Assets	8,00,000
A	3,60,000	Current Assets	3,00,000
B	2,70,000	Goodwill	2,50,000
C	1,80,000	Current Accounts
D	90,000	A	39,500
		B	(73,500)
Sundry Creditors	90,000	C	(136,500)
		D	(259,500)

Total	11,25,000	Total	11,25,000

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