X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from...

 

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X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Creditors Bills Payable General Reserve Capital Accounts Amount(RO) 20,000 10,000 15,000 X Y Z Assets Cash at Bank Stock Debtors 20,500 -Provision 500 Vehicle 40,000 30,000 20,000 135,000 It was agreed among the partners 1. Goodwill of the firm to be valued at RO 24,000 Machinery Amount(RO) 5,000 15,000 20,000 25,000 70,000 135,000 2. Stock to be depreciated by 10% and Van by 20% 3. Provision for Doubtful debts to be increased by RO 1,000 4. Liability for Outstanding expenses of RO 1,900 to be brought into account 5. Machinery to be appreciated by 10% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z. X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Creditors Bills Payable General Reserve Capital Accounts Amount(RO) 20,000 10,000 15,000 X Y Z Assets Cash at Bank Stock Debtors 20,500 -Provision 500 Vehicle 40,000 30,000 20,000 135,000 It was agreed among the partners 1. Goodwill of the firm to be valued at RO 24,000 Machinery Amount(RO) 5,000 15,000 20,000 25,000 70,000 135,000 2. Stock to be depreciated by 10% and Van by 20% 3. Provision for Doubtful debts to be increased by RO 1,000 4. Liability for Outstanding expenses of RO 1,900 to be brought into account 5. Machinery to be appreciated by 10% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z.

Answer rating: 100% (QA)

Journal entries Particulars Debit Credit Capital for X ac 6000 Capital for z ac 2000 Capital for Y a... View the full answer