Following is the Balance Sheet of A and B, who shared Profits and Losses in the ratio of 2 : 1 , as at 1st April, 2018:
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 Rs. 3,00,000 . The partners also agreed for the following:
(a) The value of Land and Building will be Rs. 5,00,000;
(b) Reserve is to be maintained at Rs. 3,00,000.
(c) The total capital of the partners in the new firm will be Rs. 6,00,000, which will be shared by the partners in their new profitsharing ratio. Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm.
