Abdul, Ahmed and Amin were partners sharing profits and losses in the ratio 4:2:2. On December 31^st, 2019, the balance Sheet of the firm stood as follow:

Balance Sheet

Liabilities	RO	Assets	RO
Creditors	45,000	Bank	99,000
General Reserve	24,000	Debtors	60,000
Capitals:		Stock	120,000
Abdul 300,000		Building	375,000
Ahmed 180,000		Profit and Loss Account	45,000
Amin 150,000	630,000
TOTAL	699,000	TOTAL	699,000

Amin retired on January 1^st,2020 on the following terms:

1. Building to be reduced by RO. 22,000.
2. The appreciated value of inventory is RO. 181,000.
3. Provision for doubtful debt to be made at 5% on debtors.
4. Goodwill of the firm is valued at RO. 42,000.
5. RO. 75,000 to be paid to Amin by transferring to his bank account immediately and the balance transferred to his loan account.

Prepare Revaluation Account, Partners Capital Account and the Balance Sheet. Based on the above information answer the following 5 questions. (Do not upload any documents)

Identify which one of the following accounting entry is correct for the revaluation of building:

a.

Dr: Revaluation account RO 15000 Cr: Building accountRO 15000

b.

Dr: Building account RO 22000 Cr: Revaluation account RO 22000

c.

Dr: Revaluation accountRO 22000 Cr: Building account RO 22000

d.

Dr: Building account RO 15000 Cr: Revaluation account RO 15000

Which one of the following accounting entry is correct with regard to retired partner Amin's loan account?

a.

Dr: Amin's loan account RO 89250 Cr: Revaluation account RO 89250

b.

Dr: Amin's loan account RO 89250 Cr: Amin's capital account RO 89250

c.

Dr: Amin's loan account RO 89250 Cr: Profit and loss account RO 89250

d.

Dr: Amin's capital account RO 89250 Cr: Amin's loan account RO 89250

The value of goodwill shown in the adjustment will be:

a.

Credited to all partners' capital account in the old profit ratio

b.

Debited to all partners' capital account in the old profit ratio

c.

Debited to remaining partners' capital account in the sacrificing ratio

d.

Credited to remaining partners' capital account in the gaining ratio

The calculated value of share of profit on revaluation transferred to partners' capital account will be:

a.

Abdul: RO 8400, Ahmed: RO 4200, Amin: RO 12600

b.

Abdul: RO 12600, Ahmed: RO 8400, Amin: RO 4200

c.

Abdul: RO 18000, Ahmed: RO 9000, Amin: RO 9000

d.

Abdul: RO 7300, Ahmed: RO 4200, Amin: RO 2300

Which one of the following shared amounts of general reserve will be transferred to each partner's capital account?

a.

Abdul: RO 10000, Ahmed: RO 5000, Amin: RO 5000

b.

Abdul: RO 12000, Ahmed: RO 6000, Amin: RO 6000

c.

Abdul: RO 21000, Ahmed: RO 10500, Amin: RO 10500

d.

Abdul: RO 20000, Ahmed: RO 10000, Amin: RO 10000