Q8. The closing Ledger balances of M/S. MANA Traders at 31 March 2020 is set out below Particular Cash in hand Sundry Debtors Stock Motor Vehicle Plant & Equipment Land & Building Goodwill MANA Traders Closing Ledger Balances As on 31st March 2020 OMR Particular 1,150 Sundry Creditors 12,650 Bills Payable 17,250 Profit and Loss A/C 11,500 A's Capital 30,475 B's Capital 23,000 K's Capital 11,500 OMR 17,250 3,450 12,075 34,500 23,000 17,250 On the above date, A's retired, and the following arrangements were agreed upon: a. Goodwill of the firm is to be valued at OMR. 27,000. b. The assets and liabilities are to be valued as under: Stock OMR. 10,000, Sundry Debtors OMR10,000, Land and Building OMR25,600, Plant and Equipment OMR27,000, Motor Vehicle OMR8,000 and Sundry Creditors OMR15,000. c. To bring into books unrecorded assets OMR 2,000 d. Band K were to introduce OMR19,000 and OMR7,000 respectively into the business and OMR16,200 was to be paid immediately and the balance transferred to his loan account. e. Band K agreed not to retain goodwill in books. f. The partner shared profit and loss ratio of 6:4:2 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 15 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)