Eveline remembered the organ player's appearance as the street organ that played the night before her mother's death. When Eveline decided to leave the house, the good old memories with her siblings, the promises she had given to her mother that she would take care of her family and would never get separated all flashed in front of her eyes like a movie. These instances held her back to fulfil her duties and stopped her from going away with her beloved Frank
Rupal, Shanu and Trisha were partners in a firm sharing profits and losses in the ratio of 4:3:1. Their Balance Sheet as at 31st March, 2024 was as follows:
(i) Trisha's share of profit was entirely taken by Shanu.
(ii) Fixed assets were found to be undervalued by Rs 2,40,000.
(iii) Stock was revalued at Rs 2,00,000.
(iv) Goodwill of the firm was valued at Rs 8,00,000 on Trisha's retirement.
(v) The total capital of the new firm was fixed at Rs 16,00,000 which was adjusted according to the new profit sharing ratio of the partners. For this necessary cash was paid off or brought in by the partners as the case may be.
Prepare Revaluation Account and Partners' Capital Accounts.