X, Y and Z were in partnership sharing profits and losses in the proportions of 3 : 2 : 1. On 1st April, 2019, Y retired from the firm. On that date, their Balance Sheet was:
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Trade Creditors
|
30,000
|
Cash in Hand
|
15,000
|
|
Bills Payable
|
45,000
|
Cash at Bank
|
75,000
|
|
Expenses Owing
|
45,000
|
Debtors
|
1,50,000
|
|
General Reserve
|
1,35,000
|
Stock
|
1,20,000
|
|
Capital A/cs:
|
|
Factory Premises
|
2,25,000
|
|
X 1,50,000
|
|
Machinery
|
80,000
|
|
Y 1,50,000
|
|
Loose Tools
|
40,000
|
|
Z 1,50,000
|
4,50,000
|
|
|
|
|
|
7,05,000
|
|
7,05,000
|
|
|
|
|
The terms were:
a Goodwill of the firm was valued at 1,35,000 and adjustment in this respect was to be made in the continuing Partners' Capital Accounts without raising Goodwill Account.
b Expenses Owing to be brought down to 37,500.
c Machinery and Loose Tools are to be valued @ 10% less than their book value.
d Factory Premises are to be revalued at 2,43,000.
Show Revaluation Account, Partners' Capital Accounts and prepare the Balance Sheet of the firm after the retirement of Y.