A , B and C were partners , sharing profits and losses in the ratio of 2 : 2 : 1 . B decides to retire on 31st March, 2018. On the date of his retirement , some of the assets and liabilities appeared in the books as follows: Creditors ₹ 70,000; Building ₹ 1,00,000; Plant and Machinery ₹ 40,000; Stock of Raw Material;s ₹ 20,000; Stock of Finished Goods ₹ 30,000 and Debtors ₹ 20,000.The following was agreed among the partners on B's retirement:(a) Building to be appreciated by 20%.(b) Plant and Machinery to be depreciated by 10%.(c) A Provision of 5% on Debtors to be created for Doubtful Debts .(d) Stock of Raw Materials too be valued at ₹ 18,000 and Finished Goods at ₹ 35,000.(e) An Old Computer previously written off was sold for ₹ 2,000 as scrap.(f) Firm had to pay ₹ 5,000 to an injured employee.Pass necessary journal entries to record the above adjustments and prepare the Revaluation Account.

A , B and C were partners , sharing profits and losses in the ratio of

1.	A , B and C were partners , sharing profits and losses in the ratio of 2 : 2 : 1 . B decides to retire on 31st March, 2018. On the date of his retirement , some of the assets and liabilities appeared in the books as follows: Creditors ₹ 70,000; Building ₹ 1,00,000; Plant and Machinery ₹ 40,000; Stock of Raw Material;s ₹ 20,000; Stock of Finished Goods ₹ 30,000 and Debtors ₹ 20,000.The following was agreed among the partners on B's retirement:(a) Building to be appreciated by 20%.(b) Plant and Machinery to be depreciated by 10%.(c) A Provision of 5% on Debtors to be created for Doubtful Debts .(d) Stock of Raw Materials too be valued at ₹ 18,000 and Finished Goods at ₹ 35,000.(e) An Old Computer previously written off was sold for ₹ 2,000 as scrap.(f) Firm had to pay ₹ 5,000 to an injured employee.Pass necessary journal entries to record the above adjustments and prepare the Revaluation Account.
Answer» A , B and C were partners , sharing profits and losses in the ratio of 2 : 2 : 1 . B decides to retire on 31st March, 2018. On the date of his retirement , some of the assets and liabilities appeared in the books as follows: Creditors ₹ 70,000; Building ₹ 1,00,000; Plant and Machinery ₹ 40,000; Stock of Raw Material;s ₹ 20,000; Stock of Finished Goods ₹ 30,000 and Debtors ₹ 20,000. The following was agreed among the partners on B's retirement: (a) Building to be appreciated by 20%. (b) Plant and Machinery to be depreciated by 10%. (c) A Provision of 5% on Debtors to be created for Doubtful Debts . (d) Stock of Raw Materials too be valued at ₹ 18,000 and Finished Goods at ₹ 35,000. (e) An Old Computer previously written off was sold for ₹ 2,000 as scrap. (f) Firm had to pay ₹ 5,000 to an injured employee. Pass necessary journal entries to record the above adjustments and prepare the Revaluation Account.

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