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X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. Z retired and on the date of his retirement, following adjustments were agreed upon:
a The value of Furniture is to be increased by 12,000.
b The value of stock to be decreased by 10,000.
c Machinery of the book value of 50,000 is to be depreciated by 10%.
d A Provision for Doubtful Debts @ 5% is to be created on debtors of book value of 40,000.
e Unrecorded Investment worth 10,000.
f An item of 1,000 included in bills payable is not likely to be claimed, hence should be written back. Pass necessary Journal entries.
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