Plz answer this q. — Leena, Madan and Naresh were partners in 'firmsharing profits and losses in the
ratio of 2 2 : 3. On 31st March 2015 their falance Sheet was as follows:
Liabilities
Trade Creditors
Bank overdraft
Long—term Debts
Rs
Assets
1 60,000 Land and Building
44 , 00 my- •hibery
4:00, ÖO(J- mF niture
Employees provident FuncU
Leena
Capital:
Madan
, ooo
Naresh 31,
37 80,000
Investments
losing Stock
ndry Debtors
Bank
eferred Advertisement
x nses
80,000
1 oo ooo
37.80 ooo
On C/ådan retired from the firm and the remaining partners decided to
carry on the buS)ness. It was decided to revalue assets and liabilities as under:
(LiD-
(ivy
A€Land gnd Building be appreciated by Rs Machinery be depreciated
50% of Investments were taken over by the retiring partner at book value.
An old customer Mohit whose account was written off as baddebts has
promised to pay Rs 7,000 in settlement of his full debt of Rs 10,000.
Provision for Doubtful Debts was to be made at 5% on debtors.
Closing Stock Will be valued at market price which is RS 1 less thatthe
boqk value.
