Atharv and Anmol were partners in a firm sharing profits and losses in the ratio of 5 : 2. Their Balance Sheet as at 31st March, 2024 was as follows:
Balance Sheet of Atharv and Anmol as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|
| Capitals: | | Fixed Assets | 14,00,000 |
|---|
| Atharv | 8,00,000 | Stock | 4,90,000 |
|---|
| Anmol | 4,00,000 | Debtors | 5,60,000 |
|---|
| General Reserve | 3,50,000 | Cash | 10,000 |
|---|
| Creditors | 9,10,000 | | |
|---|
| Total | 24,60,000 | Total | 24,60,000 |
|---|
Surya was admitted for \(\frac{2}{7}\) share in profits. Terms:
New ratio: Atharv, Anmol, Surya = 4 : 1 : 2
Fixed Assets decreased 10%
Stock sold ₹ 4,20,000
Surya brings ₹ 3,00,000 capital, ₹ 2,00,000 goodwill
Capital adjusted to Surya's capital
Prepare Revaluation A/c and Capital A/cs.