Kanika Disha and Kabir were partners sharing profits in the ratio of 2 1 1 On 31st March 2016 their ...........

Kanika, Disha and Kabir were partners sharing profits in the ratio of 2 : 1 : 1. On 31st March, 2016, their Balance Sheet was as under:

Liabilities	Amount	Assets	Amount
Trade creditors	53,000	Bank	60,000
Employees' Provident Fund	47,000	Debtors	60,000
Kanika's Capital	2,00,000	Stock	1,00,000
Disha's Capital	1,00,000	Fixed assets	2,40,000
Kabir's Capital	80,000	Profit and Loss A/c	20,000
	4,80,000		4,80,000

Kanika retired on 1st April, 2016. For this purpose, the following adjustments were agreed upon:

a Goodwill of the firm was valued at 2 years' purchase of average profits of three completed years preceding the date of retirement. The profits for the year:

2013-14 were 1,00,000 and for 2014-15 were 1,30,000.

b Fixed Assets were to be increased to 3,00,000.

c Stock was to be valued at 120%.

d The amount payable to Kanika was transferred to her Loan Account.

Prepare Revaluation Account, Capital Accounts of the partners and the Balance Sheet of the reconstituted firm.

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