Amal, Bimal & Kamal were in partnership sharing profits in the proportion of 3:2:1. The balance sheet of the firm as on 31 st March, 2024 was as…

Amal, Bimal & Kamal were in partnership sharing profits in the proportion of 3:2:1. The balance sheet of the firm as on 31 st March, 2024 was as under: Liabilities ₹ Assets ₹ Capital accounts: Building 3,00,000 Amal 4,00,000 Fixtures 1,25,000 Bimal 3,30,000 Office Equipment 1,00,000 Kamal 1,80,000 Inventories 2,25,000 Trade Payables 1,20,000 Trade Receivables 1,90,000 Cash & Bank 90,000 10,30,000 10,30,000 Amal had been suffering from ill-health and gave notice that he wished to retire. An agreement was, therefore, entered into as on 31 st March, 2024, the terms of which were as follows: (i) The profit and loss account for the year ended 31 st March, 2024 which showed a net profit of 1,50,000 was to be re-opened. Bimal was to be credited with - 30,000 as bonus, in consideration of the extra work which had devolved upon him during the year. The profit-sharing ratio was to be revised to enable partners to share profits / losses equally w.e.f.1 st April, 2023. (ii) Goodwill was to be valued at three years’ purchase of the average profits of the preceding four years. The following were the amounts of profit for the past four years: Year Profit 2020-21 1,15,000 2021-22 1,25,000 2022-23 1,40,000 2023-24 1,50,000 (iii) Fixtures were revalued at 1,00,000. Building was to be appreciated by 10%. Inventories were to be written down by - 25,000. A provision of 2.5% was to be made for doubtful debts and the remaining assets were to be taken at their book values. Bimal and Kamal agreed, as between themselves, to continue the business, sharing profits in the ratio of 3:2. The amount due to Amal is to be transferred to his loan account to be settled later. You are required to prepare: (1) Revaluation Account (2) Partners’ Capital Accounts.