21. Varun, Jagdish and Tarun were partners in a firm sharing profits and losses in the ratio of 2:2:1.
Balance Sheet of
the firm as at 31st March, 2023 was as follows:
Liabilities
?
Assets

Sundry Creditors
25,000 Cash
3,000
Bills Payable
12,000 Sundry Debtors
20,000
Reserve
15,000
Less: Provision for Doubtful Debts
1,000
19,000
Capital A/cs:
Closing Stock
30,000
Varun
40,000
Furniture
10,000
Jagdish
40,000
Plant and Machinery
40,000
Tarun
30,000
1,10,000
Building
60,000
1,62,000
1,62,000
On 1st April, 2023, Jagdish retired. The terms of retirement were following:
(i) Goodwill of the firm was to be valued at 20,000.
(ii) Furniture and Plant and Machinery were to be reduced by 10% and 5% respectively.
(iii) Stock and Building were to be appreciated by 20% and 10% respectively.
(iv) Provision for Doubtful Debts was to be increased to 1,500.
(v) Amount due to Jagdish was to be transferred to his Loan Account earning interest @ 10% p.a.
Show Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the firm after
Jagdish's retirement.​

Answer :

Answer:

To solve this problem, we will follow these steps:

1. **Prepare Revaluation Account** to adjust the values of assets and liabilities based on the given terms.

2. **Update Partners' Capital Accounts** considering the new values from the revaluation.

3. **Prepare the Balance Sheet** after Jagdish's retirement.

### Step 1: Revaluation Account

**Revaluation of Assets and Liabilities:**

- **Furniture (Decrease by 10%):**

\[ 10,000 - 10% \text{ of } 10,000 = 10,000 - 1,000 = 9,000 \]

Revaluation Loss = \( 10,000 - 9,000 = 1,000 \)

- **Plant and Machinery (Decrease by 5%):**

\[ 40,000 - 5% \text{ of } 40,000 = 40,000 - 2,000 = 38,000 \]

Revaluation Loss = \( 40,000 - 38,000 = 2,000 \)

- **Stock (Increase by 20%):**

\[ 30,000 + 20% \text{ of } 30,000 = 30,000 + 6,000 = 36,000 \]

Revaluation Gain = \( 36,000 - 30,000 = 6,000 \)

- **Building (Increase by 10%):**

\[ 60,000 + 10% \text{ of } 60,000 = 60,000 + 6,000 = 66,000 \]

Revaluation Gain = \( 66,000 - 60,000 = 6,000 \)

- **Provision for Doubtful Debts (Increase to 1,500):**

\[ 1,500 - 1,000 = 500 \]

Revaluation Loss = \( 1,500 - 1,000 = 500 \)

**Revaluation Account:**

| Particulars | Amount (₹) |

|----------------------------|------------|

| Furniture | -1,000 |

| Plant and Machinery | -2,000 |

| Stock | +6,000 |

| Building | +6,000 |

| Provision for Doubtful Debts| +500 |

| Jagdish's Loan (Interest) | +4,000 | (Interest on Loan of ₹40,000 @ 10% p.a.)

| Total | +12,500 |

### Step 2: Partners' Capital Accounts

**Varun's Capital Account:**

- Original Capital: ₹40,000

- Share of Profit: \( \frac{2}{5} \times 12,500 = 5,000 \)

- New Balance: \( 40,000 + 5,000 = 45,000 \)

**Tarun's Capital Account:**

- Original Capital: ₹30,000

- Share of Profit: \( \frac{1}{5} \times 12,500 = 2,500 \)

- New Balance: \( 30,000 + 2,500 = 32,500 \)

**Jagdish's Loan Account:**

- Amount due to Jagdish: ₹40,000

- Interest for 1 year @ 10%: ₹4,000

- Total Loan Account Balance: ₹44,000

### Step 3: Balance Sheet after Jagdish's Retirement

**Liabilities:**

| Liabilities | Amount (₹) |

|-------------------------------|------------|

| Sundry Creditors | 25,000 |

| Bills Payable | 12,000 |

| Provision for Doubtful Debts | 1,500 |

| Jagdish's Loan | 44,000 |

| Reserve | 15,000 |

| Total Liabilities | 97,500 |

**Assets:**

| Assets | Amount (₹) |

|------------------------------|------------|

| Cash | 3,000 |

| Sundry Debtors | 19,000 |

| Less: Provision for Doubtful Debts | 1,500 |

| Closing Stock | 36,000 |

| Furniture | 9,000 |

| Plant and Machinery | 38,000 |

| Building | 66,000 |

| Total Assets | 172,500 |

**Capital Accounts:**

| Partners | Amount (₹) |

|-------------------------|------------|

| Varun | 45,000 |

| Tarun | 32,500 |

| Total Capital | 77,500 |

**Balance Sheet:**

| Liabilities | Amount (₹) | Assets | Amount (₹) |

|----------------------------------|------------|--------------------------------|------------|

| Sundry Creditors | 25,000 | Cash | 3,000 |

| Bills Payable | 12,000 | Sundry Debtors | 19,000 |

| Provision for Doubtful Debts | 1,500 | Less: Provision for Doubtful Debts | 1,500 |

| Jagdish's Loan | 44,000 | Closing Stock | 36,000 |

| Reserve | 15,000 | Furniture | 9,000 |

| | | Plant and Machinery | 38,000 |

| Total Liabilities | 97,500 | Building | 66,000 |

| | | Total Assets | 172,500 |

| | | | |

| Capital Accounts: | | | |

| Varun | 45,000 | Total Liabilities | 172,500 |

| Tarun | 32,500 | | |

| | | Total Capital | 77,500 |

| Total Capital and Liabilities | 172,500 | Total Capital and Liabilities | 172,500 |

This completes the preparation of the Balance Sheet after Jagdish's retirement, incorporating the revaluation adjustments and changes in the partners' capital accounts

answer by

Answer:

hjhvv jklbb JK n y KFC did you get kjjvc John Sir

Explanation:

Kuhn and read it jkkkbb jkkmoihg noouu