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:
|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|
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.