Minu, Renu and Sonu share profits and losses equally. Their Balance Sheet as on 31st March, 2021 was as under :Balance Sheet as on 31st March, 2021LiabilitiesAmount (₹)AssetsAmount (₹)Capital Accounts :Bank25,400Minu46,600Debtors 28,000 Less- R.D.D.…

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Q.3 Minu, Renu and Sonu share profits and losses equally. Their Balance Sheet as on 31st March, 2021 was as under : Balance Sheet as on 31st March, 2021 LiabilitiesAmount (₹)AssetsAmount (₹) Capital Accounts :Bank25,400 Minu46,600Debtors 28,000 Less- R.D.D. 1,90026,100 Renu38,000Computer17,500 Sonu35,000Building70,000 Creditors40,900Machinery25,000 General reserve13,500Furniture10,000 Total1,74,0001,74,000 On 1st April, 2021, Sonu retired from the firm on the following terms: Building to be appreciated by 10% All debtors are good. Computer to be depreciated by 10% Machinery be revalued ₹ 22,500 and Furniture is revalued ₹ 9,550. Part payment of ₹ 18,000 was made to Sonu by NEFT and balance was transferred to her loan account. Prepare : (a) Profit and Loss adjustment Account (b) Partners’ Capital Account (c) Balance Sheet of Minu and Renu.

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Answer: Profit on revaluation ₹ 4,200 (₹ 1,400 each); Sonu’s loan ₹ 22,900; Balance Sheet total ₹ 1,60,200. (a) Profit and Loss Adjustment Account Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹) To Computer A/c (10% of 17,500)1,750By Building A/c (10% of 70,000)7,000 To Machinery A/c (25,000 − 22,500)2,500By R.D.D. A/c (no longer required, all debtors good)1,900 To Furniture A/c (10,000 − 9,550)450 To Profit on revaluation transferred to : Minu’s Capital A/c1,400 Renu’s Capital A/c1,400 Sonu’s Capital A/c1,400 Total8,900Total8,900 (b) Partners’ Capital Accounts Dr. ParticularsMinu (₹)Renu (₹)Sonu (₹)Cr. ParticularsMinu (₹)Renu (₹)Sonu (₹) To Bank A/c (NEFT)——18,000By Balance b/d46,60038,00035,000 To Sonu’s Loan A/c——22,900By General reserve A/c4,5004,5004,500 To Balance c/d52,50043,900—By P. and L. Adjustment A/c1,4001,4001,400 Total52,50043,90040,900Total52,50043,90040,900 (c) Balance Sheet of Minu and Renu as on 1st April, 2021 LiabilitiesAmount (₹)AssetsAmount (₹) Capital Accounts :Bank (25,400 − 18,000)7,400 Minu52,500Debtors28,000 Renu43,900Computer (17,500 − 1,750)15,750 Sonu’s Loan A/c22,900Building (70,000 + 7,000)77,000 Creditors40,900Machinery22,500 Furniture9,550 Total1,60,2001,60,200

Minu, Renu and Sonu share profits and losses equally. Their Balance Sheet as on 31st March, 2021 was as under :Balance Sheet as on 31st March, 2021LiabilitiesAmount (₹)AssetsAmount (₹)Capital Accounts :Bank25,400Minu46,600Debtors 28,000 Less- R.D.D.…

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Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts :		Bank	25,400
Minu	46,600	Debtors 28,000 Less- R.D.D. 1,900	26,100
Renu	38,000	Computer	17,500
Sonu	35,000	Building	70,000
Creditors	40,900	Machinery	25,000
General reserve	13,500	Furniture	10,000
Total	1,74,000		1,74,000

Dr. Particulars	Amount (₹)	Cr. Particulars	Amount (₹)
To Computer A/c (10% of 17,500)	1,750	By Building A/c (10% of 70,000)	7,000
To Machinery A/c (25,000 − 22,500)	2,500	By R.D.D. A/c (no longer required, all debtors good)	1,900
To Furniture A/c (10,000 − 9,550)	450
To Profit on revaluation transferred to :
Minu’s Capital A/c	1,400
Renu’s Capital A/c	1,400
Sonu’s Capital A/c	1,400
Total	8,900	Total	8,900

Dr. Particulars	Minu (₹)	Renu (₹)	Sonu (₹)	Cr. Particulars	Minu (₹)	Renu (₹)	Sonu (₹)
To Bank A/c (NEFT)	—	—	18,000	By Balance b/d	46,600	38,000	35,000
To Sonu’s Loan A/c	—	—	22,900	By General reserve A/c	4,500	4,500	4,500
To Balance c/d	52,500	43,900	—	By P. and L. Adjustment A/c	1,400	1,400	1,400
Total	52,500	43,900	40,900	Total	52,500	43,900	40,900

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts :		Bank (25,400 − 18,000)	7,400
Minu	52,500	Debtors	28,000
Renu	43,900	Computer (17,500 − 1,750)	15,750
Sonu’s Loan A/c	22,900	Building (70,000 + 7,000)	77,000
Creditors	40,900	Machinery	22,500
		Furniture	9,550
Total	1,60,200		1,60,200