Question:
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.
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:
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.
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 |
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.
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Adjust old partners’ capitals to match incoming partner’s share. Calculate revaluation gains/losses carefully.
Updated On: Jul 7, 2025
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Solution and Explanation
Revaluation A/c:
Loss on Revaluation: ₹ 1,49,000 (Fixed assets decrease + stock undervalued)
Capital A/cs:
Share of revaluation loss distributed in old ratio. Capital balances adjusted as per new capital base of Surya.
Loss on Revaluation: ₹ 1,49,000 (Fixed assets decrease + stock undervalued)
Capital A/cs:
Share of revaluation loss distributed in old ratio. Capital balances adjusted as per new capital base of Surya.
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