The Balance sheet of Ajith, Babu and Chandu as on 31st March 2008 is given below:
The partners have been sharing profits and losses in 3:2:1. Ajith died on 1st April 2008 and the following adjustments are to be made in the books of accounts.
a) A supplier for Rs. 14000 included in creditors is settled at Rs. 20,000.
b) Salary outstanding Rs.7000 is to record.
c) Creditors of Rs.4000 will not be claimed.
d) Bad debts amounting to Rs.3000 be written o.
e) The entire capital of the firm fixed at Rs. 150000 between Babu and Chandu in their new profit sharing ratio by bringing in or paying o cash as the case may be.
f) Rs.40000 is paid to Ajith by arranging a loan from the bank. The balance is transferred to his Executor’s Loan A/c.
Prepare Revaluation Account, Partners Capital Ac-count, Bank Account and the Balance Sheet as on 1st April 2008.