Questions Bank 2) Vand K were partners sharing profits and losses as 60% to V and 40% to K. Their Balance Sheet os at 1st January, 2005 stood as under Balance Sheet Amount 96.000 34.000 Liabilities Sundry creditors Bills Payable Capital accounts: V: 90,000 K: 80.000 Assets Cash n Hand Sundry debtors Stack 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 following items: Stock was to be reduced by RO 4.000 (0) Land and Buildings were to be valued at RO 160.000 A provision of 2 was to be created for doubtful debtors M A liability of R.O 2.600 for outstanding expenses had been omitted to be recorded in the books. E contributed R.O 60,000 as his share 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) 39