2. Following is the balance sheet of X, Y and Z as on 31st March, 2008. They shared profits in the ratio of 3: 3:2 Liabilities Sundry Creditors Balance Sheet as at 31st March, 2008 Amt (*) Amt (*) 50,000 General Reserve 60,000 Partners' Loan A/cs 80,000 X 50,000 (-) Provision for Doubtful Debts (4,000) 76,000 Y 1,24,000 Capital A/cs Fixed Assets 3,00,000 X Advertisement Suspense A/c 16,000 Y Z Profit and Loss A/c 4,000 2,10,000 6,30,000 6,30,000 On 1st April, 2008, Y decided to retire from the firm on the following terms (i) Stock to be depreciated by Rs. 12,000. (ii) Advertisement suspense account to be written-off. (iii) Fixed assets to be appreciated by 10%. (iv) Provision for doubtful debts to be increased to Rs. 6,000. (v) Goodwill of the firm valued at Rs. 80,000 and the amount due to the retiring partner be adjusted in X's and Z's capital account. Prepare revaluation account, partners' capital account and the balance sheet to give effect to the above. (All India 2009)
2. Following is the balance sheet of X, Y and Z as on 31st March, 2008. They shared profits in the ratio of 3: 3:2 Liabilities Sundry Creditors Balance Sheet as at 31st March, 2008 Amt (*) Amt (*) 50,000 General Reserve 60,000 Partners' Loan A/cs 80,000 X 50,000 (-) Provision for Doubtful Debts (4,000) 76,000 Y 1,24,000 Capital A/cs Fixed Assets 3,00,000 X Advertisement Suspense A/c 16,000 Y Z Profit and Loss A/c 4,000 2,10,000 6,30,000 6,30,000 On 1st April, 2008, Y decided to retire from the firm on the following terms (i) Stock to be depreciated by Rs. 12,000. (ii) Advertisement suspense account to be written-off. (iii) Fixed assets to be appreciated by 10%. (iv) Provision for doubtful debts to be increased to Rs. 6,000. (v) Goodwill of the firm valued at Rs. 80,000 and the amount due to the retiring partner be adjusted in X's and Z's capital account. Prepare revaluation account, partners' capital account and the balance sheet to give effect to the above. (All India 2009)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. Following is the balance sheet of X, Y and Z as
on 31st March, 2008. They shared profits in the
ratio of 3: 3:2
Liabilities
Sundry Creditors
Balance Sheet
as at 31st March, 2008
Amt (*)
Amt (*)
50,000
General Reserve
60,000
Partners' Loan A/cs
80,000
X
50,000
(-) Provision for Doubtful Debts (4,000)
76,000
Y
1,24,000
Capital A/cs
Fixed Assets
3,00,000
X
Advertisement Suspense A/c
16,000
Y
Z
Profit and Loss A/c
4,000
2,10,000
6,30,000
6,30,000
On 1st April, 2008, Y decided to retire from the
firm on the following terms
(i) Stock to be depreciated by Rs. 12,000.
(ii) Advertisement suspense account to be
written-off.
(iii) Fixed assets to be appreciated by 10%.
(iv) Provision for doubtful debts to be increased
to Rs. 6,000.
(v) Goodwill of the firm valued at Rs. 80,000 and
the amount due to the retiring partner be
adjusted in X's and Z's capital account.
Prepare revaluation account, partners' capital
account and the balance sheet to give effect to
the above. (All India 2009)
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