Q32 Following is the Balance Sheet of A and B who shared Profits and Losses in the ratio of 2 1 as a...........

Q32.Following is the Balance Sheet of A and B, who shared Profits and Losses in the ratio of 2 : 1, as at 1st April, 2019:

BALANCE SHEET OF A AND B

On the above date, the partners changed their profit-sharing ratio to 3 : 2. For this purpose, the goodwill of the firm was valued at 3,00,000. The partners also agreed for the following:

a

The value of Land and Building will be 5,00,000;

b

Reserve is to be maintained at 3,00,000.

c

The total capital of the partners in the new firm will be 6,00,000, which will be shared by the partners in their new profit-sharing ratio. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.