8 The balance sheet of Modi, Gandhi and Yadav, who share profits in the ratio of \( 2: 2: 1 \) is given below
On 1st April, 2018, they decide that in future, they will share profits in the ratio of \( 3: 2: 1 . \) The following adjustments are agreed upon.
(i) Stock is found to be undervalued by \( 10 \% \).
(ii) Building will be appreciated by \( ₹ 50,000 \).
(iii) Machinery and furniture and fittings will be depreciated by \( 5 \% \) and \( 10 \% \) respectively.
(iv) A provision of \( 5 \% \) will be created on debtors.
(v) Goodwill will be valued at 2 years' purchase of average profits of last 3 years which \( ₹ 2,00,000, ₹ 2,25,000 \) and \( ₹ 3,75,000 \) respectively. The profit of \( ₹ 3,75,000 \) includes profi sale of machinery \( ₹ 5,000 \).
(vi) Claim on account of workmen compensation is estimated to be \( ₹ 60,000 \).
Prepare revaluation account, partners' capital accounts and the balance sheet of the new firm.
Ans Profit on revaluation \( =₹ 46,750 \); value of goodwill \( =₹ 5,30,000 ; \) Balance of capital accounts :
