Q. 39 (A). X. Y and Z were partners in a firm sharing profits in 5 : 3 : 2 ratio. On
31st March, 2016 Z retired from the firm. On the date of Z's retirement the Balan
Sheet of the firm was as follows
BALANCE SHEET OF XF AND Z
as ar 31st March 2016
20.000
500
Creditors
Bills Payable
Outstanding Rent
Provision for Legal Claims
Capital Arcs
1.27.000
>
90.000
71.000
D elt
27.000 Bank
13.000 Dehtors
22.500 Las Provision for
57.500 Doubtful Debts
Stock
Furniture
Land and Building
2.88.000
4.08.000
31000
Z
Fel
On I s retirement it was agreed that
in Land and Building will be appreciated by 5% and furniture will be
depreciated by 20%
(in) Provision for doubtful debts will be made at 5% on debtors and provision for
legal claims will be made 360,000.
in) Goodwill of the firm was valued at 60.000
(iv) 70,000 from Z's Capital Account will be transferred to his loan account and
the balance will be paid to him by cheque.
Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of
and Y after Z's retirement.
Answers
Answer:
2005
eptember 1. Started business with Rs. 100,000, paid into Bank Rs. 40,000,
2. Bought furniture for Rs. 10,000 and machinery for Rs. 20,000
3. Purchased goods for Rs. 28,000.
6. Sold goods for Rs. 16,000.
8. Purchased goods from Ishtiaq & Co. Rs. 22,000.
10. Paid telephone rent for the year by cheque Rs. 1,000.
11. Bought one typewriter for Rs. 4,200 from Universe
Typewriter Co. on credit.
15. Sold goods to Khurram for Rs. 24,000.
17. Sold goods to Ajmal for Rs. 4,000 for cash.
19. Amount withdrawn from bank for personal use Rs. 3,000.
20. Withdrew from bank for business use Rs. 7,000.
21. Received cash from Khurram Rs. 23,800, discount allowed Rs. 200.
22. Paid into bank Rs. 11,600.
25. Goods worth Rs. 2,000 found defective were returned to Ishta
& Co. and the balance of the amount due to them was settle
by issuing a cheque in their favour.
28. Bought goods worth Rs. 4,200 from Aslam and supplied then
to Akram at Rs. 6,000.
30. Akram returned goods worth Rs. 200, which in turn were se
to Aslam at Rs. 140.
30. Issued a cheque for Rs. 2,000 in favour
Explanation:
2005
eptember 1. Started business with Rs. 100,000, paid into Bank Rs. 40,000,
2. Bought furniture for Rs. 10,000 and machinery for Rs. 20,000
3. Purchased goods for Rs. 28,000.
6. Sold goods for Rs. 16,000.
8. Purchased goods from Ishtiaq & Co. Rs. 22,000.
10. Paid telephone rent for the year by cheque Rs. 1,000.
11. Bought one typewriter for Rs. 4,200 from Universe
Typewriter Co. on credit.
15. Sold goods to Khurram for Rs. 24,000.
17. Sold goods to Ajmal for Rs. 4,000 for cash.
19. Amount withdrawn from bank for personal use Rs. 3,000.
20. Withdrew from bank for business use Rs. 7,000.
21. Received cash from Khurram Rs. 23,800, discount allowed Rs. 200.
22. Paid into bank Rs. 11,600.
25. Goods worth Rs. 2,000 found defective were returned to Ishta
& Co. and the balance of the amount due to them was settle
by issuing a cheque in their favour.
28. Bought goods worth Rs. 4,200 from Aslam and supplied then
to Akram at Rs. 6,000.
30. Akram returned goods worth Rs. 200, which in turn were se
to Aslam at Rs. 140.
30. Issued a cheque for Rs. 2,000 in favour