Shubhi and Revanshi were partners in a firm sharing profits and losses in the ratio of \(3 : 2\). Their Balance Sheet as at 31st March 2023 was as follows:
\[
\begin{array}{|l|r|l|r|}
\hline
Liabilities & Amount (\rupee) & Assets & Amount (\rupee)
\hline
\text{Capitals:} & & \text{Fixed Assets} & 90,000
\quad \text{Shubhi} & 60,000 & \text{Stock} & 38,000
\quad \text{Revanshi} & 32,000 & \text{Debtors} & 30,000
\text{General Reserve} & 30,000 & \text{Cash} & 52,000
\text{Bank Loan} & 18,000 & &
\text{Creditors} & 70,000 & &
\hline
Total & 2,10,000 & Total & 2,10,000
\hline
\end{array}
\]
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Adjustments:
Pari brings \rupee50,000 as her capital and \rupee50,000 as her share of premium for goodwill for \( \frac{1}{4} \) share in the profits of the firm.
Fixed assets were depreciated by 30\%.
Stock was revalued at \rupee45,000.
Bank loan was paid off.
Capitals of Shubhi and Revanshi were adjusted based on Pari’s capital, with actual cash being paid or brought in.
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