Q. The Balance Sheet at X, Y and Z who were sharing profits in the ratio of 5:3:2 as at 31st March, 2002:
Liablities | Amount | Assets | Amount |
Creditors | 50000 | Cash at Bank | 40000 |
Employees' Provident Fund | 10000 | Sundry Debtors | 100000 |
Profit and Loss A/c | 85000 | Stock | 80000 |
X's Capital | 40000 | Fixed Assets | 60000 |
Y's Capital | 62000 | ||
Z's Capital | 33000 | ||
280000 | 280000 |
The other terms on retirement were as follows:
- Goodwill of the firm is to be valued at Rs. 80,000
- Fixed Assets are to be depreciated to Rs. 57,500.
- Make a provision for Doubtful Debts at 5% on Debtors.
- A liability for claim, included in Creditors for Rs. 10,000 is settled at Rs. 8,000.
Prepare Profit and Loss Adjustment Account and Partners' Capital Accounts.