Pls solve this fast pls 8) Following is the Balance sheet of Aruna, Karuna and Varuna as at 31" March, - Accountancy - Reconstitution- Retirement/Death of a Partner

Question

Pls solve this fast pls

Neha Arora · Accepted Answer

Dear Student,

Revaluation
Account

Particulars
Amount (Rs)
Particulars
Amount (Rs)

Machinery A/c
60,000
Land & Building
A/c
60,000

Bad Debts A/c (17,000 – 10,000)
7,000
Loss transferred to:

Aruna’s Capital A/c

2,000

Karuna’s Capital A/c

3,000

Varuna’s Capital A/c

2,000
7,000

67,000

Partners’ Capital
Accounts

Dr

Cr

Particulars
Aruna
Karuna
Varuna
Particulars
Aruna
Karuna
Varuna

Revaluation A/c
2,000
3,000
2,000
Balance b/d
2,00,000
3,00,000
2,00,000

Aruna’s Capital A/c
−
20,000
20,000
General Reserve A/c
10,000
15,000
10,000

Bank A/c
50,000
−
−
Workmen Compensation Fund A/c
2,000
3,000
2,000

Aruna’s Loan A/c
2,00,000
−
−
Karuna’s Capital A/c
20,000
−
−

Balance c/d
−
4,00,000
3,00,000
Varuna’s Capital A/c
20,000
−
−

Bank A/c
(Balancing Figure)

1,05,000
1,10,000

2,52,000
4,23,000
3,22,000

2,52,000
4,23,000

3,22,000

Bank Account

Particulars
Amount (Rs)

Amount (Rs)

Balance b/d
1,00,000
Aruna’s Capital A/c
50,000

Karuna’s Capital
1,05,000
Balance c/d
2,65,000

Varuna’s Capital
1,10,000

3,15,000

Balance Sheet
as on March 31, 2016

Liabilities
Amount (Rs)
Assets
Amount (Rs)

Capital A/cs:

Land & Building
2,60,000

Karuna

4,00,000

Machinery
2,40,000

Varuna

3,00,000
7,00,000
Debtors
1,10,000

Aruna’s Loan
2,00,000

Less: Bad Debts

17,000
93,000

Workmen Compensation
Fund
8,000
Stock
1,00,000

Creditors
50,000
Bank
2,65,000

9,58,000

Working Notes:

WN 1: Calculation of
Goodwill

Aruna's Goodwill = 1,40,000 × 27= Rs 40,000

WN 2: Calculation of Gaining
Ratio

Karuna = 47 - 37 = 17 Varuna = 37 - 27 = 17 Gaining ratio = 1: 1

WN 3: Calculation of New
Capital

Total Capital of New Firm= 7,00,000 Karuna's Capital = 7,00,000 × 47 = Rs 4,00,000Varuna's Capital = 7,00,000 × 37 = Rs 3,00,000

Revaluation Account
Particulars	Amount (Rs)	Particulars		Amount (Rs)
Machinery A/c	60,000	Land & Building A/c		60,000
Bad Debts A/c (17,000 – 10,000)	7,000	Loss transferred to:
		Aruna’s Capital A/c	2,000
		Karuna’s Capital A/c	3,000
		Varuna’s Capital A/c	2,000	7,000
	67,000			67,000

Partners’ Capital Accounts
Dr.								Cr.
Particulars	Aruna	Karuna	Varuna	Particulars	Aruna	Karuna	Varuna
Revaluation A/c	2,000	3,000	2,000	Balance b/d	2,00,000	3,00,000	2,00,000
Aruna’s Capital A/c	−	20,000	20,000	General Reserve A/c	10,000	15,000	10,000
Bank A/c	50,000	−	−	Workmen Compensation Fund A/c	2,000	3,000	2,000
Aruna’s Loan A/c	2,00,000	−	−	Karuna’s Capital A/c	20,000	−	−
Balance c/d	−	4,00,000	3,00,000	Varuna’s Capital A/c	20,000	−	−
				Bank A/c (Balancing Figure)		1,05,000	1,10,000
	2,52,000	4,23,000	3,22,000		2,52,000	4,23,000	3,22,000

Bank Account
Particulars	Amount (Rs)		Amount (Rs)
Balance b/d	1,00,000	Aruna’s Capital A/c	50,000
Karuna’s Capital	1,05,000	Balance c/d	2,65,000
Varuna’s Capital	1,10,000
	3,15,000		3,15,000

Balance Sheet as on March 31, 2016
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital A/cs:			Land & Building		2,60,000
Karuna	4,00,000		Machinery		2,40,000
Varuna	3,00,000	7,00,000	Debtors	1,10,000
Aruna’s Loan		2,00,000	Less: Bad Debts	17,000	93,000
Workmen Compensation Fund		8,000	Stock		1,00,000
Creditors		50,000	Bank		2,65,000
		9,58,000			9,58,000