Q8.

The post-closing trial balance of M/S. Shaheen Traders at 31 March 2020 is set out below

:

Shaheen Traders

Post Closing Trial Balance

As on 31^St March 2020

Particular	Debit	Credit
	OMR	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		24,220
Bills Payable		4,844
Ajmal Capital		48,438
Azeem Capital		32,292
Kamran Capital		24,219
Profit and Loss Account		16,953
`	150,965	150,965

On the above date, Ajmal retired, and the following arrangements were agreed upon:

1. Goodwill of the firm is to be valued at OMR. 30,000.

2. 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.

3. 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.

4. To bring into books unrecorded investments OMR 5,000

5. Azeem and Kamran agreed not to retain goodwill in books.

6. 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 1^st April 2020, after all above arrangement have been completed. Write down the impact of retirement with explanations cum values in the new balance sheet.