Class 12 solutions dk Goel
. A, B and C are partners sharing profits in 4 : 3 : 3. Their Balance Sheet as at 31st March 2018 was as follows: Liabilities Rs. Assets Rs. Sundry Creditors General Reserve A's Capital Accounts : B's Capiatal Accounts C's Capital Accounts 1,20,000 40,000 4,00,000 2,00,000 2,00,000 Land and Building Stock Debtors : 1,50,000 Less : Provision for Doubtful Debts 30,000 Cash at Bank 5,00,000 2,40,000 1,20,000 1,00,000 9,60,000 9,60,000 C retires on 1st April, 2018 and A and B decide to share future profits in the ratio of 6 : 4. It is agreed that : (i) Goodwill of the firm is valued at Rs. 80,000 (ii) Land & Building is undervalued by Rs. 1,00,000 and Stock is overvalued by 20%. (iii) Provision for Doubtful Debts is to be decreased to Rs. 10,000. (iv) Computer valued Rs. 30,000 was unrecorded in the books. It was decided to pay off C by giving him this computer and the balance in annual instalments of Rs. 1,00,000 together with interest @ 10% p.a. You are required to prepare : (a) Revaluation Account, (b) C's Capital Account, and (c) C's Loan Account till it is finally closed.