Question

31. P, Q and R were partners sharing profits in the proportions of one-half, one-third and one-
sixth respectively. The firm's Balance Sheet as on 31st December, 2019 stood as under :
F ₹
₹
Sundry Creditors
19,000 Cash
2,500
Bills Payable
5,000 Debtors
- 16,000
Reserve Fund
12,000 Less : Provision
500 15,500
Capital Accounts:
Stock
25,000
P
40,000
Motor Vans
8,000
30,000
Plant and Machinery
35,000
R
25,000 95,000 Factory Buildings
45,000
1,31,000
1,31,000
R retires on 31st Dec., 2019 to these adjustments : (1) The goodwill of the firm to be valued
at 18,000. (2) Plant to be depreciated by 10% and Motor Vans by 15% (3) Stock to be
appreciated by 20% and buildings by 10%. (4) Provision for Doubtful Debts to be increased
by 1,950. (5) Liability for workmen's compensation to the extent of 450 is to be brought
3
2
into books. It was agreed that P and Q will share in future in the ratio of P - and Q Pass
5 5
Journal entries, prepare Memorandum Revaluation Account, Capital Accounts and Balance
Sheet when the assets and liabilities are to continue to appear at their old figures.​

Answer 1

Answer:

31. P, Q and R were partners sharing profits in the proportions of one-half, one-third and one-

sixth respectively. The firm's Balance Sheet as on 31st December, 2019 stood as under :

F ₹

₹

Sundry