A, B and C are partners sharing profits and losses in the ratio of 2:2:1. Their Balance Sheet as on 31 st March, 2024 is as follows: Liabilities…

(a) Revaluation Account 2024 ₹ Amount ₹ 2024 ₹ Amount ₹ April, 1 To Provision for bad and doubtful debts 825 April, 1 By Stock 3,750 To Furniture and fittings 975 By Land and Building 7,500 To Capital A/c’s: (Profit on revaluation Transferred in the ratio of2:2:1) A 3,780 B 3,780 C 1,890 9,450 11,250 11,250 Partners’ Capital Accounts Particulars A (₹) B (₹) C (₹) D (₹) Particulars A (₹) B (₹) C (₹) D (₹) To A’s Capital A/c 1,500 By Balance b/d 18,000 18,000 7,500 – To B’s Capital A/c 1,500 By General Reserve 3,900 3,900 1,950 To Balance c/d 28,680 27,180 11,340 7,500 By Cash – – – 10,500 By D’s Capital A/c 1,500 1,500 – – By Outstanding Liabilities 1,500 – – By Revaluation A/c 3,780 3,780 1,890 – 28,680 27,180 11,340 10,500 28,680 27,180 11,340 10,500 Balance Sheet of M/s. A, B, C and D as at April, 1,2024 (after Admission of D) Liabilities Amount (₹) Assets Amount (₹) Trade payables (Trade Creditors) 19,275 Land and Buildings 37,500 Outstanding Liabilities 750 Add: Appreciation 7,500 45,000 Capital Accounts of Partners: Furniture 9,750 Mr. A 28,680 Less: Depreciation (975) Mr. B 27,180 8,775 Mr. C 11,340 Closing Stock 17,625 Mr. D 7,500 Add: Revaluation 3,750 74,700 21,375 Trade Debtors 8,250 Less: Provisions (825) 7,425 Cash in hand and Bank Balance 12,150 94,725 94,725 Working Note: (a) Calculation of sacrificing ratio Partners New share Old share (Sacrifice) Gain A 5/15 2/5 -1/15 B 5/15 2/5 -1/15 C 3/15 1/5 No gain No loss — D 2/15 2/15 (b) D’s Share of Goodwill = 22,500 ×₹ 2/15 = 3,000 Sacrifice by Mr. A and Mr. B = 1,500 each (c) Cash and Bank Balance: Particulars Amount Balance as on 31.03.2024 1,650 Add: Capital introduced by D 7,500 Add: Goodwill introduced by D 3,000 Balance as on 01.04.2024 12,150