Coreporate Accounting 1

OR The post closing trial balance of M/S. Shaheen Traders at 31 March 2020 is set out below OMR Shaheen Traders Post Closing Trial Balance As on 31 March 2020 Parti Debi OMR Cash at Bank 1,615 Sundry Debtors 17,761 Stock 24,219 Machinery 16,146 Equipment 42,787 Land & Building 32,292 Goodwill 16,146 Sundry Creditors Bills Payable Ajmal Capital Azeem Capital Kamran Capital Profit and Loss Account 150,965 24,220 4,844 48,438 32,292 24,219 16,953 150,965 On the above date, Ajmal retired, and the following arrangements were agreed upon: a. Goodwill of the firm is to be valued at OMR. 30,000 b. The assets and liabilities are to be valued as under: Stock OMR19,000, Sundry Debtors OMR15,500, Land and Building OMR35,600, Equipment OMR38,000 and Machinery OMR 12,000 and Sundry Creditors OMR21,000. c. Azeem and Kamran were to introduce OMR23,000 and OMR8,000 respectively into the business and OMR18,200 was to be paid immediately and the balance transferred to his loan account. d. To bring into books unrecorded investments OMR 5,000 e. Azeem and Kamran agreed not to retain goodwill in books. f. Ajmal, Azeem and Kamran profit and loss sharing ratio are 4:2:1 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 14 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