Varsha, Shanthi and Madhuri are partners, sharing profits in the ratio of 5:4:3. Their balance sheet as on 31st December 2017 is as under:
Balance Sheet as on 31st December 2017
|
Liabilities
|
Rs. |
Rs. |
Asset |
Rs. |
| Capital accounts: |
|
|
Premises |
1,20,000 |
| Varsha |
80,000 |
|
Stock |
40,000 |
| Shanthi |
60,000 |
|
Debtors |
50,000 |
| Madhuri |
20,000 |
1,60,000 |
Cash at bank |
18,000 |
| General reserve |
|
48,000 |
Profit and loss A/c (loss) |
12,000 |
| Sundry creditors |
|
32,000 |
|
|
| |
|
2,40,000 |
|
2,40,000 |
On 1.1.2018, Madhuri died and on her death the following arrangements are made:
(i) Stock to be depreciated by Rs. 5,000
(ii) Premises is to be appreciated by 20%
(iii) To provide Rs. 4,000 for bad debts
(iv) The final amount due to Madhuri was not paid
Prepare revaluation account, partners’ capital account and the balance sheet of the firm after death.
