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X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Amount (RO) Assets Amount (RO) 10,000 Creditors 40,000 Cash at Bank Bills Payable 20,000 Stock 30,000 30,000 Debtors LESS Provision General Reserve Capital Accounts 80,000 RO 1000 40,000 Y 60,000 Vehicle 50,000 Z 40,000 Machinery 140,000 270,000 270,000 It was agreed among the partners Goodwill of the firm to be valued at 48,000 2,000 Provision for Doubtful debts to be increased by Outstanding expenses to be brought into account Vehicle is to be depreciated by 3,800 17.5% Stock is to be depreciated by 12.5% Machinery is to be appreciated by 7.5% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z. X

X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Amount (RO) Assets Amount (RO) 10,000 Creditors 40,000 Cash at Bank Bills Payable 20,000 Stock 30,000 30,000 Debtors LESS Provision General Reserve Capital Accounts 80,000 RO 1000 40,000 Y 60,000 Vehicle 50,000 Z 40,000 Machinery 140,000 270,000 270,000 It was agreed among the partners Goodwill of the firm to be valued at 48,000 2,000 Provision for Doubtful debts to be increased by Outstanding expenses to be brought into account Vehicle is to be depreciated by 3,800 17.5% Stock is to be depreciated by 12.5% Machinery is to be appreciated by 7.5% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z. X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q3 X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Amount (RO) Assets Amount (RO) Creditors 40,000 Cash at Bank 10,000 Bills Payable 20,000 Stock 30,000 General Reserve Capital Accounts 30,000 Debtors LESS Provision 80,000 RO 1000 40,000 Y 60,000 Vehicle 50,000 Z 40,000 Machinery 140,000 270,000 270,000 It was agreed among the partners Goodwill of the firm to be valued at 48,000 2,000 Provision for Doubtful debts to be increased by Outstanding expenses to be brought into account Vehicle is to be depreciated by 3,800 17.5% Stock is to be depreciated by 12.5% Machinery is to be appreciated by 7.5% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z. X
Transcribed Image Text:Q3 X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Amount (RO) Assets Amount (RO) Creditors 40,000 Cash at Bank 10,000 Bills Payable 20,000 Stock 30,000 General Reserve Capital Accounts 30,000 Debtors LESS Provision 80,000 RO 1000 40,000 Y 60,000 Vehicle 50,000 Z 40,000 Machinery 140,000 270,000 270,000 It was agreed among the partners Goodwill of the firm to be valued at 48,000 2,000 Provision for Doubtful debts to be increased by Outstanding expenses to be brought into account Vehicle is to be depreciated by 3,800 17.5% Stock is to be depreciated by 12.5% Machinery is to be appreciated by 7.5% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z. X
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