Q2 The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of 5:3:2 Liabilities Amount (RO) Assets Amount (RO) Creditors 120,000 Cash at Bank 90,000 Bills Payable 48,000 Stock 150,000 General Reserves 60,000 Debtors 180,000 Capital Accounts A 240,000 Furniture 48,000 B 210,000 Land and Buildings 360,000 C 150,000 828,000 828,000 They Admit D into Partnership giving him 1/5th share of profits on the following terms: D brings in his capital Provision is be made for outstanding expenses Goodwill already appears in the books 150,000 126,000 120,000 12.50% 7.50% Furniture is to be written down by Stock is to be depreciated by Land and Buildings is to be appreciated by 15.0% Write the Necessary Journal Entries. Prepare Revaluation Account, Capital Accounts and Balance sheet of the firm as newly constituted. Q3 X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Amount (RO) Assets Creditors Bills Payable General Reserve 40,000 Cash at Bank 20,000 Stock 30,000 Debtors LESS Provision Capital Accounts X 80,000 RO 1000 Y 60,000 Vehicle Z 40,000 Machinery Amount (RO) 10,000 30,000 40,000 50,000 140,000 270,000 It was agreed among the partners Goodwill of the firm to be valued at Provision for Doubtful debts to be increased by Outstanding expenses to be brought into account Vehicle is to be depreciated by Stock is to be depreciated by Machinery is to be appreciated by 270,000 48,000 2,000 3,800 17.5% 12.5% 7.5% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z.