1.

The Balance Sheet of X, Y and Z who were sharing profits in proportion to their capitals stood as follows at 31st March, 2018: Y retires on 1st April, 2018 and the following readjustments were agreed upon: (a) Out of insurance premium which was debited to the Profit and Loss Account ₹ 1,500 be carried forward as Unexpired Insurance. (b) The Provision for Doubtful Debts be brought up to 5% o Debtors. (c) The Land and Building be appreciated by 20%. (d) A provision of ₹ 4,000 be made in respect of outstanding bills for repairs. (e) The goodwill of the entire firm be fixed at ₹ 21,600. Y’s share of goodwill be adjusted to that of X and Z whoa re going to share in future profits in the ratio of 3 : 1. Pass necessary journal entries and give the Balance Sheet after Y’s retirement.

Answer»

% o Debtors.(c) The Land and Building be APPRECIATED by 20%.(d) A PROVISION of ₹ 4,000 be made in respect of outstanding bills for repairs.(e) The GOODWILL of the entire firm be fixed at ₹ 21,600HOPE THIS HELPS ❤️PLEASE MARK AS BRAINLIEST ❤️❤️



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