X Y and Z are partners sharing profits in the ratio of 4 3 2 Their Balance Sheet as at 31st March 20...........

X, Y and Z are partners sharing profits in the ratio of 4 : 3 : 2. Their Balance Sheet as at 31st March, 2019 stood as follows:

Liabilities	Amount	Assets		Amount
Creditors	24,140	Cash at Bank		3,300
Capital		Sundry Debtors	3,045
A/cs:
X 12,000		Less: Provision for Doubtful Debts	105	2,940
Y 9,000		Stock		4,800
Z 6,000	27,000	Plant and Machinery		5,100
		Land and Building		15,000
		Y's Loan		20,000
	51,140			51,140

Y retired on 1st April, 2019 after giving due notice. Following adjustments in the books of the firm were agreed:

a Land and Building be appreciated by 10%.

b Provision for Doubtful Debts is no longer necessary since all the debtors are good. c Stock be appreciated by 20%.

d Adjustment be made in the accounts to rectify a mistake previously committed whereby Y was credited in excess by 810, while X and Z were debited in excess of 420 and 390 respectively.

e Goodwill of the firm be valued at 5,400 and Y's share of the same be adjusted to that of X and Z who were going to share in the ratio of 2 : 1. f It was decide by X and Y to settle Y's account immediately on his retirement.

Prepare: i Revaluation Account; ii Partner's Capital Accounts and iii Balance Sheet of the firm after Y's retirement.

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