Question - 30 

On 31st Dec., 2007 the balance sheet of Raju and Niraj is as follows:

Liabilities : Capital A/c : Raju and Neeraj Rs. 10,000 and 7,500, General reserve Rs. 6,000, Employees provident fund Rs. 500, Creditors Rs. 2,000, Profit and loss A/c Rs. 6,000.

Assets : Plant & Machinery Rs. 20,000, Patents Rs. 2,000, Closing Stock Rs. 5,000, Debtors Rs. 4,000, Cash Rs. 1,000.

On 1st January, 2008 Raju retires from the firm and goodwill was valued at Rs. 10,000 and patent has become valueless Depreciation is charged at 10% on Machinery and a reserve is to be created at 5% on debtors for doubtful debts amount is to be paid to Raju by taking loan form the firm from the above adjustment prepare : (i) Revaluation Account and (ii) Capital Account of Raju.

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