3.116 Rs. 600 8.500 DI Particulars To Balance b/d To Z's Capital A/C To Premium (Goodwill) Alc To X's Capital A/C (iv) CASH ACCOUNT Rs. Particulars 3.200 By Y's Capital A/C 3.600 By Balance cld 1.500 800 9.100 9.100 To Balance b/d 8.500 GRADED ILLUSTRATIONS (HOTS) ILLUSTRATION 1 (Preparation of Balance Sheet of reconstituted firm). A and B are partners in the fim sharing profits and losses as 70% and 30%. On 1" April 2010, their position was as given below: BALANCE SHEET as at 1.04.2010 Liabilities Rs. Assets Rs. Creditors Workmen's Comensation Reserve General Reserve A's Capital B's Capital 15.000 5.000 20.000 30,000 20,000 Cash at Bank Debtors Stock Plant-1 Plant-2 Profit and Loss Alc 4,000 10.000 40,000 25,000 10,000 1,000 90,000 90.000 C admits for rd share in the future profits on 1.4.2010. He brings Rs.10,000 for his share of goodwill. He has to introduce re rd of the combined capital of existing partners after all the adjustments are carried out. It was decided : (a) To decrease Plant-1 and Plant-2 by 10% and 20% respectively; (b) To revalue Stock at Rs.36,000; (c) To create Provision for Bad Debts at Rs.3.000 (d) New Ratio of A,B and C will be equal. Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of new firm