Question - 23 (A)

X, Y and Z are partners in a firm sharing profits and losses in the ratio of 2:2:1 Z retires and the balance sheet of the firm on that date was as under :

Liabilities : Creditors Rs. 10,000, General Reserve Rs. 20,000, Profit & Loss A/c Rs. 5,000, Workmans compensation fund Rs. 2,000, Capital A/c : X, Y and Z Rs. 30,000, 30,000 and 15,000 Total : 1,12,000.

Assets : Cash Rs. 12,000, Debtors Rs. 25,000, Stock Rs. 20,000, Plant Rs. 20,000 and Patent Rs. 10,000 Total : 1,12,000.

It was agreed that stock is to be brought down to Rs. 18,000 and plant is reduce by Rs. 15,000 and that patents were found valueless. there was no liability on account of workmen's comensation fund.

Pass journal entires at the time of retirment.

Question - 23 (B)

X, Y and Z are equal partners of a firm their balance sheet is as under :

Liabilities : Creditors Rs. 5,000, Capital A/c : X, Y and Z are Rs. 5,000, 5,000 and 5,000 Total : 20,000.

Assets : Cash Balance Rs. 2,000, Debtors Rs. 5,000, Stock Rs. 6,000, Machinery Rs. 5,000 and Furniture Rs. 2,000 Total : 20,000.

Following adjustment were made on Z's retirement :

  1. Create a provision of 5% on debtors for bad debts.
  2. Stock was valued at Rs. 7,000 and Machinery was valued at Rs. 6,000.
  3. Reduce creditors by 10%.
Prepare Revaluation Account.

Question - 23 (C)

A, B and C are partners in a firm sharing profit and loss in the ratio of 3:2:1 their balance sheet on 30th june 2007 was as follows:
Liabilities : Creditors Rs. 1,600, General Res. Rs. 6,000, Capital A/c : A, B and C are 10,000, 10,000 and 10,000. 
Assets : Cash Rs. 600, Cash at Bank Rs. 1,000, Debtors Rs. 9,000, Stock Rs. 7,000, Machinery Rs. 6,000 and Building Rs. 14,000.
On this day C retires from the firm and the assets were revalued as under :
  1. Create a provision @ 5% for bad debts.
  2. Depreciate stock by 5% and Manchienry by 10%.
  3. The vlaue of building was revalued at Rs. 15,100 by an independent valuer.
Prepare Revaluation account from the given information.

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