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Chapter 6 Retirement of a Partner 6.15
.
BALANCE SHEET OF X AND Y
as at 1st April, 2018

Liabilities ` Assets `
Sundry Creditors ? Cash at Bank 1,500
Workmen Compensation Claim 3,000 Debtors 40,000
Employees’ Provident Fund 6,000 Less: Provision for Doubtful Debts 2,400 37,600
Bills Payable 2,125 Stock 37,650
Z’s Loan 2,125 Patents 8,000
X’s Capital 65,300 Plant and Machinery ?
Y’s Capital 30,200 95,500
1,29,750 1,29,750

Solution:
Dr. REVALUATION ACCOUNT Cr.

Particulars ` Particulars `
To Patents A/c 2,000 By Investments A/c 2,600
To Plant and Machinery A/c 5,000 By Loss transferred to:
To Provision for Doubtful Debts A/c 400 X’s Capital A/c 2,400
Y’s Capital A/c 1,600
Z’s Capital A/c 800 4,800
7,400 7,400

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X Y Z Particulars X Y Z
` ` ` ` ` `
To Goodwill A/c 3,000 2,000 1,000 By Balance b/d 68,000 32,000 21,000
To Z’s Capital A/c 3,000 2,000 By Workmen Compen-
(Goodwill) sation Reserve 4,500 3,000 1,500
To Revaluation A/c 2,400 1,600 800 By Investments
(Loss) Fluctuation Reserve 3,000 2,000 1,000
To Advertisement By X’s Capital A/c 3,000
Expenditure A/c 1,800 1,200 600 (Goodwill)
To Investments A/c 17,600 By Y’s Capital A/c 2,000
To Bank A/c 4,250 (Goodwill)
To Z’s Loan A/c 2,125
To Bills Payable A/c 2,125
To Balance c/d 65,300 30,200
75,500 37,000 28,500 75,500 37,000 28,500