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Question
Gita, Radha, and Garv were partners in firm sharing profits and losses in the ratio of 3: 5: 2. On 31st March 2019, their balance sheet was as follows:
Balance Sheet of Gita, Radha & Garv as on 31st March 2019
| Liabilities |
Amount (₹) |
Assets | Amount (₹) |
| Sundry Creditors |
60,000 |
Cash | 50,000 |
| General Reserve |
40,000 |
Stock | 80,000 |
| Capitals : |
|
Debtors | 40,000 |
| Gita - 3,00,000 |
|
Investments | 30,000 |
| Radha - 2,00,000 |
|
Buildings | 5,00,000 |
| Garv - 1,00,000 |
6,00,000 |
||
| 7,00,000 | 7,00,000 |
Radha retired on the above date and it was agreed that:
(a) Goodwill of the firm be valued at ₹ 3,00,000 and Radha's share be adjusted through the capital accounts of Gita and Gary.
(b) Stock was to be appreciated by 20%.
(c) Buildings were found undervalued by ₹ 1,00,000.
(d) Investments were sold for ₹ 34,000.
(e) Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.
Prepare Revaluation Account, Partner's Capital Accounts, and the Balance Sheet of the reconstituted firm on Radha's retirement.
Solution
In the books of Gita and Garv
| Dr. | Revaluation A/c | Cr. | |
| Particulars |
Amount(₹)
|
Particulars | Amount(₹) |
|
|
By Stock A/c | 16,000 | |
|
|
By Building A/c | 1,00,000 | |
|
|
By Investments A/c | 4,000 | |
| To Profit on revaluation transf. to: |
|
||
| Gita’s Capital A/c 36,000 |
|
||
| Radha’s Capital A/c 60,000 |
|
||
| Garv’s Capital A/c 24,000 |
1,20,000
|
||
|
1,20,000
|
1,20,000 | ||
| Dr. | Partner’s Capital A/c | Cr. | |||||
| Particulars |
Gita
(₹)
|
Radha
(₹)
|
Garv
(₹)
|
Particulars |
Gita
(₹)
|
Radha
(₹)
|
Garv
(₹)
|
| To Radha’s Capital A/c |
90,000
|
|
60,000
|
By balance b/d |
3,00,000
|
2,00,000
|
1,00,000
|
| To Radha’s Loan A/c |
|
4,30,000
|
|
By Gita’s Capital A/c |
|
90,000
|
|
| To balance c/d |
3,00,000
|
|
2,00,000
|
By Garv’s Capital A/c |
|
60,000
|
|
|
|
|
|
By General Reserve A/c |
12,000
|
20,000
|
8,000
|
|
|
|
|
|
By Revaluation A/c |
36,000
|
60,000
|
24,000
|
|
|
|
|
|
By Current A/c |
42,000
|
|
1,28,000
|
|
|
3,48,000
|
4,30,000
|
2,60,000
|
3,48,000
|
4,30,000
|
2,60,000
|
||
Working Notes:
1) Calculation of Radha’s Share of Goodwill
| Goodwill of the firm | = ₹ 3,00,000 |
| Radha’s Share of Goodwill | = ₹ (3,00,000 × 5/10) = ₹ 1,50,000 |
Gaining ratio will be same as the new profit-sharing ratio i.e. 3: 2
2) Adjustment of Capital:
| Total Capital of the firm | = ₹ 5,00,000 |
| Gita’s New Capital | = ₹ (5,00,000 × 3/5)= ₹ 3,00,000 |
| Garv’s New Capital | = ₹ (5,00,000 × 2/5)= ₹ 2,00,000 |
Existing Capitals of Gita and Garv are ₹ 2,58,000 and ₹ 72,000
| Amount to be debited to Gita’s Current A/c | = New Capital – Old Capital |
| = ₹ ( 3,00,000 – 2,58,000) = ₹ 42,000 | |
| Amount to be debited to Garv’s Current A/c | = New Capital – Old Capital |
| = ₹ ( 2,00,000 – 72,000)= ₹ 1,28,000 |
Balance Sheet as at 31st March, 2019
| Liabilities |
Amount(₹)
|
Assets |
Amount(₹)
|
| Sundry Creditors |
60,000
|
Stock |
96,000
|
| Radha’s Loan A/c |
4,30,000
|
Building |
6,00,000
|
| Capital A/cs |
|
Debtors |
40,000
|
| Gita - 3,00,000 |
|
Current A/c: |
|
| Garv - 2,00,000 |
5,00,000
|
Gita - 42,000 |
|
|
|
Garv - 1,28,000 |
1,70,000
|
|
|
|
Cash |
84,000
|
|
|
|
(50,000 + 34,000) |
|
|
|
9,90,000
|
9,90,000
|
APPEARS IN
RELATED QUESTIONS
A. B and C were partners in a firm sharing profits in the ratio of 5: 3: 2. On 31-3-2015 their Balance Sheet was as follows:
Balance Sheet of A,B and C as on 31-3-2015
| Liabilities | Amount(Rs) | Assets | Amount(Rs.) |
|
Creditors Investment Fluctuation Fund P & L Account Capitals A 1,50,000 B 1,20,000 C 60,000
|
63,000 30,000 1,20,000
3,30,000
|
Land & Building Motor Vans Investments Machinery Stock Debtors 1,20,000 Less : Provision 9,000 Cash
|
1,86,000 60,000 57,000 36,000 45,000
|
| 5,43,000 | 5,43,000 |
On the above date B retired and A and C agreed to continue the business on the following terms:
(1) Goodwill of the firm was valued at Rs.1, 53,000.
(2) Provision for bad debts was to be reduced by Rs.3,000.
(3) There was a claim of Rs.12,000 for workmen compensation.
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Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of A and C.
A, B and C were partners in a firm sharing profit in the ratio of 3:2:1. On 31-3-2015 their Balance sheet was as follows :
Balance Sheet of A,B and C as on 31-3-2015
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Creditors General Reserve
Capitals A 60,000 B 40,000 C 20,000 |
84,000 21,000
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|
17,000 23,000 1,10,000 30,000 10,000 35,000
|
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Balance Sheet of Kushal, Kumar and Kavita as on 1st April 2012
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|
Creditors Bill payable General Reserve Capital: Kushi 3,00,000 Kumar 2,80,000 Kavita 3,00,000 |
1,20,000 1,80,000 1,20,000
8,80,000 |
Cash Debtors 2,00,000 Less: Provision 10,000 Stock Furniture Building Land |
70,000
1,90,000 2,20,000 1,20,000 3,00,000 4,00,000 |
| 13,00,000 | 13,00,000 |
On the above date, Kavita retired and the following was agreed:
i. Goodwill of the firm was valued at Rs.40,000.
ii. The land was to be appreciated by 30% and the building was to be depreciated by Rs.1,00,000.
iii. Value of furniture was to be reduced by Rs.20,000.
iv. Bad debts reserve is to be increased to Rs.15,000.
v. 10% of the amount payable to Kavita was paid in cash and the balance was transferred to her Loan Account.
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Balance Sheet of Nardeep,Hardeep and Gagandeep as on 31-3-2015
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Bills Payable General Reserve Capitals Nardeep 2,00,000 Hardeep 1,00,000 Gagandeep 50,000 |
1,00,000 40,000 60,000
3,50,000 |
Land Building Plant Stock Debtors Bank
|
1,00,000 1,00,000 2,00,000 80,000 60,000 10,000
|
| 5,50,000 | 5,50,000 |
From 1-4-2015 Nardeep, Hardeep and Gagandeep decided to share the future profits equally. For this purpose it was decided that
(a) Goodwill of the firm be valued at Rs 3, 00,000.
(b) Land be revalued at Rs 1, 60,000 and building be depreciated by 6%.
(c) Creditors of Rs 12,000 were not likely to be claimed and hence be written off.
Prepare, Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm.
Under which major headings the following items will be presented in the Balance sheet of a company as per Schedule VI Part I of the Companies Act, 1956?
(1) Loans provided repayable on demand
(2) Goodwill
(3) Copyrights
(4) Loose tools
(5) Cheques
(6) General Reserve
(7) A stock of finished goods and
(8) 9% Debentures repayable after three years
O, R and S were partners in a firm sharing profit in the ratio of 3:2:1 On 1.4.2014 their Balance Sheet was as follows:
| Liabilities |
Amount RS |
Assets |
Amount Rs |
|
Capital Accounts O 1,75,000 R 1,50,000 S 1,25,000 Current Accounts O 4,000 S 6,000 General Reserve Profit and Loss Accounts Creditors Bills Payable |
4,50,000
10,000 15,000 7,000 80,000 45,000 |
R’s Current Accounts Land and Building Plant and Machinery Furniture Investment Bills Receivables Sundry Debtors Stock Bank
|
7,000 1,75,000 67,500 80,000 36,500 17,000 43,500 1,37,000 43,500
|
| 6,07,000 | 6,07,000 |
On the above date, H was admitted on the following terms:
(i) H will bring Rs 50,000 as his capital and will get 116 th share in the profits.
(ii) He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was
valued at Rs 90,000.
(iii) The new profits sharing ratio will be 2:2:1:1.
(iv) A liability of Rs 7,004 will be created against bills receivables discounted.
(v) The value of stock, furniture and investments is reduced by 20% whereas the value of land and building and plant and machinery will be appreciated by 20% and 10% respectively.
(vi) The Capital accounts of the partners will be adjusted on the basis of H's Capital through their
current accounts.
Prepare Revaluation Account and Partner's Current Accounts and Capital Accounts.
Manu, Hary, Ali and Reshma were partners in a firm sharing profits in the ratio of 2 : 2 : 1 : 5. On 1.4.2016 their Balance Sheet was as follows:
|
Balance Sheet of Manu, Hary, Ali and Reshma as on 1.4.2016 |
||||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
|
Capitals: |
|
Fixed Assets |
8,00,000 |
|
|
Manu |
2,00,000 |
|
Current Assets |
2,40,000 |
|
Hary |
2,50,000 |
|
|
|
|
Ali |
1,50,000 |
|
|
|
|
Reshma |
3,50,000 | 9,50,000 |
|
|
|
|
|
|
|
|
|
Sundry Creditors |
45,000 |
|
|
|
|
Workmen Compensation Reserve |
45,000 |
|
|
|
|
|
10,40,000 |
|
10,40,000 |
|
|
|
|
|
||
From the above date partners decided to share future profits equally. For this purpose the goodwill of the firm was valued at Rs 40,000. The partners also agreed for the following:
(i) Claims against Workmen Compensation Reserve was estimated at Rs 50,000. Fixed assets were to be depreciated by 10%.
(ii) Capitals of the partners were to be adjusted according to the new profit sharing ratio, for this necessary cash will be brought or paid.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
A, B and C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31-3-2015 their Balance Sheet was as follows:
|
Balance Sheet of A, B and C as on 31-3-2015 |
|||||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
||
|
Creditors |
63,000 |
Land and Building |
1,86,000 |
||
|
Investment |
|
Motor Vans |
60,000 |
||
|
Fluctuation Fund |
30,000 |
Investments |
57,000 |
||
|
P & L Account |
1,20,000 |
Machinery |
36,000 |
||
|
Capitals: |
|
Stock |
45,000 |
||
|
A |
1,50,000 |
|
Debtors |
1,20,000 |
|
|
B |
1,20,000 |
|
Less: Provision |
9,000 |
1,11,000 |
|
C |
60,000 |
3,30,000 |
Cash |
48,000 |
|
|
|
5,43,000 |
|
5,43,000 |
||
|
|
|
|
|||
On the above date B retired and A and C agreed to continue the business on the following terms :
(1) Goodwill of the firm was valued at Rs 1,53,000.
(2) Provision for bad debts was to be reduced by Rs 3,000.
(3) There was a claim of Rs 12,000 for workmen compensation.
(4) B will be paid Rs 24,600 in cash and the balance will be transferred to his loan account which will be paid in four equal yearly instalments together with interest @ 10% p.a.
(5) The new profit sharing ratio between A and C will be 3:2 and their capital will be in their new profit sharing ratio. The capital adjustments will be done by opening current accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of A and C.
Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31.3.2013 and 31.3.2012.
|
|
Particulars |
Note No. |
31.3.2013 Rs |
31.3.2012 Rs |
|
I |
Equity and Liabilities : |
|
|
|
|
1. |
Shareholder’s Funds : |
|
|
|
|
|
(a) Share Capital |
|
8,00,000 |
6,00,000 |
|
|
(b) Reserve and Surplus |
|
4,00,000 |
3,00,000 |
|
2. |
Non-Current Liabilities : |
|
|
|
|
|
Long Term Borrowings |
|
1,00,000 |
1,50,000 |
|
3. |
Current Liabilities : |
|
|
|
|
|
Trade Payables |
|
40,000 |
48,000 |
|
|
Total |
|
13,40,000 |
10,98,000 |
|
|
|
|
|
|
|
II |
Assets |
|
|
|
|
1. |
Non-Current Assets : |
|
|
|
|
|
(a) Fixed Assets : |
|
|
|
|
|
(i) Tangible Assets |
|
8,50,000 |
5,60,000 |
|
|
(b) Non-Current Investment |
|
2,32,000 |
1,60,000 |
|
2. |
Current Assets : |
|
|
|
|
|
(a) Current Investments (Marketable) |
|
50,000 |
1,34,000 |
|
|
(b) Inventories |
|
76,000 |
82,000 |
|
|
(c) Trade Receivables |
|
38,000 |
92,000 |
|
|
(d) Cash and Cash Equivalents |
|
94,000 |
70,000 |
|
|
Total |
|
13,40,000 |
10,98,000 |
|
|
From the following items of Receipts and Payments A/c of South India Club, prepare an Income and Expenditure Account for the year ended 31.3.2010:
|
Particulars |
Rs |
|
Salaries Paid |
55,000 |
|
Lighting expenses |
5,500 |
|
Stationery (Including Rs 400 for the previous year) |
4,000 |
|
Subscription received (including 1,000 received in advance |
44,000 |
|
and Rs 750 for the previous year) |
|
|
Net Proceeds of Refreshment Room |
30,000 |
|
Miscellaneous Expenses |
3,000 |
|
Interest paid on loan for three months |
1,200 |
|
Rent and Rates (Including Rs 500 pre-paid) |
4,500 |
|
Lockers Rent received |
Additional Information:
Subscriptions in arrears on 31.3.2010 were Rs 4,700 and nine months interest on loan was also outstanding.
X, Y and Z were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31.3.2010 their Balance Sheet was as follows:
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Capital Accounts: |
|
Building |
50,000 |
|
|
X |
75,000 |
|
Patents |
15,000 |
|
Y |
62,000 |
|
Machinery |
75,000 |
|
Z |
37,500 |
1,75,000 |
Stock |
37,500 |
|
Sundry Creditors |
42,500 |
Debtors |
20,000 |
|
|
|
|
Cash at Bank |
20,000 |
|
|
|
2,17,500 |
|
2,17,500 |
|
|
|
|
|
|
|
Z died on 31.7.2010. It was agreed that:
(a) Goodwill be valued at 2½ year’s purchased of the average profits of the last four year which were as follows:
|
Years |
Profit Rs |
|
2006 – 2007 |
32,500 |
|
2007 – 2008 |
30,000 |
|
2008 – 2009 |
40,000 |
|
2009 – 2010 |
37,500 |
(b) Machinery be valued at Rs 70,000; Patents at Rs 20,000 and Building at Rs 62,500.
(c) For the purpose of calculating Z’s share of profits on the year of his death the profit in 2010 − 2011 should be taken to have been accrued on the same scale as in 2009 − 2010.
(d) A sum of Rs 17,500 was paid immediately to the executors of Z the balance was paid in four half yearly installments together with interest at 12% p.a. starting from 31.1.2011.
Given necessary journal entries to record the above transaction and Z’s executor’s account till the payment of installments due on
31.1.2011
Murari and Vohra were partners in a firm with capitals of Rs 1,20,000 and Rs 1,60,000 respectively. On 1.4.2010 they admitted Yadav
as a partner for non-fourth share in profits on his payment of Rs 2,00,000 as his capital and Rs 90,000 for this one-fourth share of goodwill.
On that date the creditors of Murari and Vohra were Rs 60,000 and Bank Overdraft was Rs 15,000. Their assets apart from cash included Stock Rs 10,000; Debtors Rs 40,000; Plant and Machinery Rs 80,000; Land and Building Rs 2,00,000. It was agreed that stock should be depreciated by Rs 2,000; Plant and Machinery by 20%, Rs 5,000 should be written off as bad debts and Land and
Building should be appreciated by 25%.
Prepare Revaluation Account, Capital Accounts of Murari, Vohra and Yadav and the Balance Sheet of the new firm.
From the following Receipts and Payments Account of Kolkata Sports Club for the year ended
31.3.2011, prepare Income and Expenditure Account.
|
Receipts and Payments Account of Kolkat Sports Club for the year ended 31.3.2011 |
|||
|
Dr. |
|
|
Cr. |
|
Receipts |
Amount Rs |
Payments |
Amount Rs |
|
To Balance b/d |
3,200 |
By Salary |
1,800 |
|
To Subscription |
22,500 |
By Rent (paid on 30.9.2010 for 12 months) |
2,300 |
|
To Entrance Fees (including Rs 1,000 as capital income) |
3,000 |
By Electricity |
1,000 |
|
To Donations |
750 |
By Taxes |
2,200 |
|
To Rent of hall |
1,750 |
By Printing and Stationery |
400 |
|
To Accrued interest for the year 2009 – 2010 |
2,000 |
By Sundry Expenses |
900 |
|
|
|
By Books |
7,500 |
|
|
|
By 9% Fixed Deposit (on 1.4.2010) |
15,200 |
|
|
|
By Balance c/d |
1,900 |
|
|
33,200 |
|
33,200 |
|
|
|
|
|
Khanna, Seth and Mehta were partners in a firm sharing profit in the ratio of 3 : 2 : 5. On
31.12.2010 the Balance Sheet of Khana, Seth and Mehta was as follows:
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Capitals: |
|
Goodwill |
3,00,000 |
|
|
Khanna: |
3,00,000 |
|
Land and Building |
5,00,000 |
|
Seth: |
2,00,000 |
|
Machinery |
1,70,000 |
|
Mehta: |
5,00,000 |
10,00,000 |
Stock |
30,000 |
|
General Reserve |
1,00,0000 |
Debtors |
1,20,000 |
|
|
Loan from Seth |
50,000 |
Cash |
45,000 |
|
|
Creditors |
75,000 |
Profit and Loss Account |
60,000 |
|
|
|
12,25,000 |
|
||
On 14th March 2011, Seth died.
The partnership deed provides that on the death of a partner the executor of the deceased partners
is entitled to:
(i) Balance in Capital Account;
(ii) Share in profits upto the date of death on the basis of last year’s profit;
(ii) His share in profit/loss in revaluation of assets and re-assessment of liabilities which were as follows:
(a) Land and Building was to be appreciated by Rs 1,20,000;
(b) Machinery was to be depreciated to Rs 1,35,000 and stock to Rs 25,000;
(c) A provision of `2 1/2%` for bad and doubtful debts was to created on debtors;
(iv) The net amount payable to Seth’s executors was transferred to his loan account which was to be paid later.
Prepare Revalution Account, Partners Capital Accounts, Seth’s Executors Account and the
Balance Sheet of Khanna and Mehta who decided to continue the business keeping their capital balances in their new profit sharing ratio. Any surplus of deficit to be transferred the current account of the partners.
Answer briefly of the following question:
Give any two differences between Revaluation Account and Realisation Account.
Annie and Bonnie are partners in a firm, sharing profits and losses equally. Their Balance Sheet as at 31st March,
2017, was as follows:
Balance Sheet of Annie and Bonnie
As at 31st March, 2017
| Liabilities | Amount Rs. | Assets | AmountRs. |
| Sundry Creditors | 21,000 | Cash at Bank | 20,000 |
| General Reserve | 15,000 |
Sundry Debtors 22,000 Less Provision for Doubtful Debts (1,000) |
21,000 |
|
Capital A/c Annie 45,000 Bonnie40,000 |
85,000 |
Stock | 10,000 |
| Plant & Machinery | 60,000 | ||
| Goodwill | 10,000 | ||
| 1,21,000 | 1,21,000 |
Carl was to be taken as a partner for 1/4 share in the profits of the firm, with effect from 1st April, 2017, on the
following terms:
(a) Bad debts amounting to Rs. 1,500 to be written off.
(b) Stock to be taken over by Annie at Rs.12,000.
(c) Plant and Machinery to be valued at Rs. 50,000.
(d) Goodwill of the firm to be valued at Rs. 20,000.
(e) Carl to bring in Rs. 50,000 as his capital. He was unable to bring his share of goodwill in cash.
(f) General Reserve not to be distributed. For this, it was decided that Carl would compensate the old partners
through his current account.
You are required to:
(i) Pass journal entries on the date of Carl's admission.
(ii) Prepare the Balance Sheet of the reconstituted firm
Achla and Bobby were partners in a firm sharing profits and losses in the ratio of 3: 1. On 31st March 2019, their balance sheet was as follows:
Balance Sheet of Achla and Bobby as on 31st March 2019
| Liabilities |
Amount(₹) |
Assets |
Amount(₹) |
| Creditors |
1,10,000 |
Cash at bank |
60,000 |
| General Reserve |
40,000 |
Debtors |
40,000 |
| Workmen's compensation reserve |
50,000 |
Stock |
45,000 |
| Capitals : |
|
Furniture |
1,55,000 |
| Achla - 4,00,000 |
|
Land & Building |
5,00,000 |
| Bobby - 2,00,000 |
6,00,000 |
|
|
|
8,00,000 |
8,00,000 |
On 1st April 2019, they admitted Vihaan as a new partner for 1/5th share in the profits of the firm on the following terms:
(a) Vihaan brought ₹ 1,00,000 as his capital and the capitals of Achla and Bobby were to be adjusted on the basis of Vihaan's capital; any surplus or deficiency was to be adjusted by opening current accounts.
(b) Goodwill of the firm was valued at ₹ 4,00,000. Vihaan brought the necessary amount in cash for his share of goodwill premium, half of which was withdrawn by the old partners.
(c) Liability on account of workmen's compensation amounted to ₹ 80,000.
(d) Achla took overstock at ₹ 35,000.
(e) Land and building was to be appreciated by 20%.
Prepare Revaluation Account, Partner's Capital Accounts, and the Balance Sheet of the reconstituted firm on Vihaan's admission.
X and Y were partners in the profit-sharing ratio of 3 : 2. Their balance sheet as at March 31, 2022 was as follows:
| Balance Sheet as at March 31, 2022 | |||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
| Creditors | 56,000 | Plant and Machinery | 70,000 | ||
| General Reserve | 14,000 | Buildings | 98,000 | ||
| Capital Accounts: | Stock | 21,000 | |||
| X | 1,19,000 | 2,31,000 | Debtors | 42,000 | 35,000 |
| Y | 1,12,000 | (-) Provision | 7,000 | ||
| Cash in Hand | 77,000 | ||||
| 3,01,000 | 3,01,000 | ||||
Z was admitted for 1/6th share on the following terms:
- Z will bring ₹ 56,000 as his share of capital but was not able to bring any amount to compensate the sacrificing partners.
- Goodwill of the firm is valued at ₹. 84,000.
- Plant and Machinery were found to be undervalued by ₹ 14,000 Building was to be brought up to ₹ 1,09,000.
- All debtors are good.
- Capitals of X and Y will be adjusted on the basis of Z’s share and adjustments will be done by opening necessary current accounts.
You are required to prepare revaluation account and partners’ capital account.
