A, B and C were partners in a firm sharing profits

29 :-  A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Their Balance Sheet as on 31st March, 2015 was as follows:

From 1st April, 2015, A, B and C decided to share profits equally. For this it was agreed that:
(i) Goodwill of the firm will be valued at Rs 1,50,000.
(ii) Land will be revalued at Rs 80,000 and building be depreciated by 6%
(iii) Creditors of Rs 6,000 were not likely to be claimed and hence should be written off.
Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the reconstituted firm.

Solution :-

WORKING NOTES :-
(i) Calculation of gaining/sacrificing share
Old ratio = 3:2:1
New ratio = 1:1:1
A = 3/6 – 1/3 = 1/6 (sacrifice)
B = 2/6 – 1/3 = 0 (no change)
C = 1/6 – 1/3 = -1/6 (gain)