BSAC$2206/$BSAC$2202$: CORPORATE ACCOUN

ASSIGNMENT QUSTIONS

The Balance Sheet of Abdullah, Suhail & Rahman, as on December $31,2021,$ is given below.

They are sharing profits in the ratio $5$:$3$:$2$

Balance Sheet as on $31$ st December $2021$

Suhail retires on March $31,2022,$ date and the following adjustments are agreed upon his

retirement.

Stock was valued at OMR $34,400$

Furniture and fittings were valued at OMR $16,000.$

Profit share of Suhail till the date of his retirement is to be calculated based on firm's

last year profit which is OMR $40,000.$

An amount of OMR $2,000$ due from a debtor was doubtful and a provision for the same

was required.

Suhail was paid OMR $8,000$ immediately on retirement and the balance was transferred

to his loan account.

Abdullah and Rahman were to share future profits in the ratio of $3$:$2.$

Required:

Prepare Revaluation Account, Capital Account and Balance Sheet of the reconstituted firm.