Question - 27 

A, B and C are partners in a firm sharing profit and loss in the ratio of 1/2, 1/3 and 1/6 respectively on 31st Dec., 2006 their balance sheet was as follows:

Liabilities : Creditors Rs. 8,000, Bank Over. Rs. 3,600, Gen. Reserve Rs. 12,000, Capital A/c : A, B and C are Rs. 20,000, 10,000 and 10,000.

Assets : Cash Rs. 15,600, Sundery Debtors Rs. 13,000, Stock Rs. 17,000, Machinery Rs. 3,000, Furniture Rs. 3,500 and Building Rs. 11,500.

C retires on that date and following adjustment were decided :

Increase the value of stock by 10% Deprecaite machinery by 5% Create reserve at 5% on debtors Value of goodwill is Rs. 12,000. Prepare following on 31st Dec., 2006 (i) Revaluation account (ii) Capital accounts of partenrs. (iii) Balance sheet of the firm after making payment to 'C'.

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