Question

8 retired on 1st April, 2017 and the following was agreed upon
(1) That stock be depreciated by 6%
(w) That the Provision for Doubtful Debts he brought up to 5% on Debtors
(in) That Land and Buildings be appreciated by 20%
(a) That a provision of 770 be made in respect of outstanding legal charges
(v) Investments are brought down to 78,500.
(vi) That the Goodwill of the entire firm be fixed at 10,800 and B's share of goodwil
be adjusted into the accounts of A and C who are going to share future profits in
the ratio of 5.3.
(vi) That the entire capital of the firm as newly constituted be fixed at $28.000
between A and C in the proportion of 5 : 3 (actual cash to be brought in or paid
off, as the case may be).
Pass journal entries and show the Balance Sheet after transferring B's share to
separate Account in his name​

Answer 1

Answer:

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