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 Goodwill of the firm is to be valued at OMR 30,000 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 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 To bring into books unrecorded investments OMR 5,000 Azeem and Kamran agreed not to retain goodwill in books 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

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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

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:

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

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.

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.

To bring into books unrecorded investments OMR 5,000

Azeem and Kamran agreed not to retain goodwill in books.

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.