Question - 28 

A, B and C are partners dividing the profit in ratio of their capital on 31st Dec., 2008, their balance sheet was as follws :

Liabilies : Creditors Rs. 30,500, Capital A/c : A, B and C are Rs. 20,000, 15,000 and 15,000.

Assets : Cash at Bank Rs. 3,500, Debtors Rs. 35,000, Stock Rs. 15,000, Plant Rs. 25,000 and Tools Rs. 2,000.

C retired on that date goodwill was valued at Rs. 18,000 stock was revalued at Rs. 20,000, Plant at Rs. 15,000 and tools at Rs. 1,000.

Pass journal entries and prepare C's capital account after the above adjustment Also prepare P & L adjustment Account.

NOTE : Please purchase the book for looking question.