Sarthaks Test
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Radha, Sheela and Meena were in partnership sharing profits and losses in the proportion of 3:2:1. On April 1, 2007, Sheela retires from the firm. On that date, their Balance Sheet was as follows:

LiabilitiesRs.Amt.AssetsRs. Amt.
Trade creditors3,000cash in hand1,500
Bills payable4,500cash at Bank7,500
Expenses owing4,500Debtors15,000
General Reserve13,500stock12,000
capitals 
Radha 15,000
sheela 15,000
Meena 15,000
Factory premises22,500
Machinery8,000
45,000Loose tools4,000
70,50070,500

The terms were 

(a) Goodwill of the Firm was valued at ? 13,000. 

(b) Expenses owing to be brought down to? 3,750. 

(c) Machinery and Loose Tools are to be valued at 10% less than their book value. 

(d) Factory premises are to be revalued at ? 24,300. Prepare 

1. Revaluation account 

2. Partners capital accounts 

3. Balance sheet of the firm after retirement of Sheela

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