Anita, Sunita and Kavita were partners in a business sharing Profits and Losses in the ratio of 2:2:1 respectively. Their Balance Sheet as on 31st March 2019 is as under.
On 1st July 2019 Kavita died and the following adjustment were made:
1. All the Debtors were considered as good.
2. A contingent liability for a compensation of ₹900 was provided.
3. Investment were sold out in the market at 10% profit.
4. Loan were paid off.
5. Land and Building were depreciated by ₹800 and Furniture by ₹1100.
6. Goodwill of the firm was valued at ₹15000. It was to be raised in the Books.
7. Kavita was entitled to get her share in the profit upto the date of her death. Profit for 2019-20 was estimated at ₹10,000.
8. The amount due to Kavita’s executors was paid by NEFT.
Prepare: Revaluation Account, Partners Capital Account, Balance sheet of new firm.