nznm

nem (Retirement of a Partner) P Q and R are partners sharing profit and losses in the ratio of 1:21 On 31 3 2010 the Balance Sheet was a under BALANCE SHEET as at 31.3.2010 Rs. Assets Liabilities RS 2.000 13.000 3.000 30.000 16.000 Creditors Investment Fluctuation Reserve P's Capital Q's Capital R's Capital Cash Debtors Les Provision Stock 14,000 800 13.200 12.800 5.000 33.000 Investments 27.000 Land and Building Plant and Machinery 35.000 95.000 95.000 On the same date Rretired and the following adjustment was to made (a) That an amount of R100 included in Sundry Debtors be written off as no longer receivable. Provision to be continued Rs 800 That Stock be written down by Rs 1.000 That Land and Building be written up by Rs 47.000 That Plant and Machinery be reduced to Rs 34,000 That an amount of Rs 1.700 included in Sundry Creditors be written back as no longer payable Goodwill was valued at Rs 18,000 and retining partner's share of the same be adjusted into the accounts of remaining partners (no goodwill account being raised) That provision of Rs 600 be made for an Outstanding Repali Bill th) Thai Investment be decreased to Rs 3.800 Thar R was to be paid through cash brought in by P and Q in such a way as to make their capital proportionate to their new profit sharing ratio which was to be 32 Prepare Revaluation Account Partners Capital Accounts Cash Account and Balance Sheet after R Retirement