Question

X, Y and Z were partners in a firm sharing profits and losses in the ratio of 4:3:3.  On 31-3-2018, their balance sheet was as follows:  BALANCE SHEET AS ON 31-3-2018 LIABILITIES ASSETS Creditors 1,10,000 General Reserve 60,000 Capital a/c’s X 3,00,000 Y 2,50,000 Z 1,50,000 7,00,000  Cash 80,000 Debtors 90,000  (--) provision 10,000 80,000 Stock 1,00,000 Machinery 3,00,000 Building 2,00,000 Patents 60,000 Profit & Loss a/c 50,000  8,70,000 8,70,000  On the above date, X retired and it was agreed that:  [i] Debtors of Rs.4, 000 will be written –off as bad debts and provision of 5% on debtors for bad  & doubtful debts will be maintained.  {ii] An unrecorded creditor of Rs. 20,000 will be recorded.  [iii] Patents will be completely written off and 5% depreciation will be charged on stock,  machinery and building.  [iv] Y and Z will share future profits in the ratio of 3:2.  [v] Good will of the firm on X’s retirement was valued at Rs.5,40,000. Pass necessary journal entries and revaluation account on X’s retirement. ​

Answer 1

Answer:

bro please upload the pic of the question

to difficult to read