55 :- The balance sheet of Asha, Deepa and Lata who were sharing profits in the ratio of 5:3:2 as at 31st March 2025 is as follows :-
Asha retired on 1st April 2025 and Deepa and Lata decided to share profits in future in the ratio of 3:2 respectively.
The other terms on retirement were:
(a) Goodwill of the firm is to be valued at Rs 80,000.
(b) Fixed assets are to be depreciated to Rs 57,500.
(c) Make a provision for doubtful debts at 5% on debtors.
(d) A liabiltiy for claim, included in creditors for Rs 10,000 is settled at Rs 8,000.
The amount to be paid to Asha by Deepa and Lata in such a way that their Capitals are proportionate to their profit-sharing ratio and leave a balance of Rs 15000 in the bank account.
Prepare Revaluation account and Partner’s capital Accounts.
Solution :-
