CHAPTER 2 ADML Search Marwa Al-Kharusi MA tions Animations Slide Show Review View Help -172 A A A E V - Ao 2 A Find Replace Select Shapes Arrange Oud ont Paragraph Drawing Questions Bank 2) Vand K were partners sharing profits and losses as 60% to V and 40% to K. Their Balance Sheet as at Ist January, 2005 stood as under Balance Sheet Liabilities Sundy creditors Bils Payable Capital accounts: V: 90,000 K: 80.000 Amount 96,000 34,000 Assets Cash in Hand Sundry deblos Stock Plant & machinery Land & Buildings Amount 4,000 56,000 40,000 80,000 120.000 170,000 300,000 300,000 The partners agreed to admit Einto the firm subject to revaluation of the folowing items: 10 Stock was to be reduced by R$4.000 ( Land and Buildings were to be valued at RO 160,000) A provision of 2% was to be created for doubtful debtors (lv) A liability of R.O 2600 for outstanding expenses had been omilled to be recorded in the books. E contributed R.O 60,000 as his shore of capital. Required: Prepare the revaluation account, capital accounts and the balance sheet after the above adjustment. (Ans. Profit on Revaluation: R.O 32,000; Balance Sheet Total: R.O 334.600)