08 The post-closing trial balance of M/S. Modern Traders at 31 March 2020 is set out below Modern Traders Post Closing Trial Balance As on 31 March 2020 Particular Debit Credit OMR OMR Cash at Bank 2,062 Sundry Debtors 22,679 Stock 30,925 Motor Vehicle 20,617 Plant 54,635 Land & Building 41,234 Goodwill 20,617 Sundry Creditors 30,927 Bills Payable 6,185 Aleem Capital 61,850 Bilal Capital 41,234 Khurshid Capital 30,925 General Reserve A/C 21,648 192,769 192,769 On the above date, Aleem retired, and the following arrangements were agreed upon: a. Goodwill of the firm is to be valued at OMR45,000 b. The assets and liabilities are to be valued as under: Stock OMR25,000, Sundry Debtors MR18,500, Land and Building OMR50,600, Plant OMR45,000 and Sundry Creditors OMR29,000. To bring into books unrecorded investments OMR 2,000 d. Creditor includes OMR 5,000 no longer payable and this sum was to be written off. e. Bilal and Khurshid were to introduce OMR23,000 and OMR9,000 respectively into the business and OMR22,200 was to be paid immediately and balance transfer to loan accounts. 1. Bilal and Khurshid agreed not to retain goodwill in books. 8. Aleem, Bilal and Khurshid Profit and loss sharing ratio 3:2:1 respectively. You are required to pass necessary Journal entries with proper narrations to record the above transactions. Prepare revaluation account, capital accounts, bank account and financial position of the new firm as at 1" April 2020, after all above arrangement have been completed. Write down the impact of retirement with explanations cum values in the new balance sheet. (1+1+1+1+1=5 Marks) Page 8 of 10