X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 1 : 2. On 31st March, 2019, their Balance Sheet was:
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
Bills Payable |
12,000
|
Freehold Premises |
40,000 |
Sundry Creditors |
28,000 |
Machinery |
30,000 |
General Reserve |
12,000 |
Furniture |
12,000 |
Capital A/cs: |
|
Stock |
22,000 |
X |
30,000 |
|
Sundry Debtors |
20,000
|
|
Y |
20,000 |
|
Less: Provision for Doubtful Debts |
1,000
|
19,000
|
Z |
28,000 |
78,000
|
Cash |
7,000
|
|
|
|
|
|
|
1,30,000
|
|
1,30,000
|
|
|
|
|
Z retired on 1st April, 2019 from the business and the partners agree to the following:
(a) Freehold Premises and Stock are to be appreciated by 20% and 15% respectively.
(b) Machinery and Furniture are to be reduced by 10% and 7% respectively.
(c) Provision for Doubtful Debts is to be increased to ₹ 1,500.
(d) Goodwill of the firm is valued at ₹ 21,000 on Z's retirement.
(e) Continuing partners to adjust their capitals in their new profit-sharing ratio after retirement of Z. Surplus/deficit, if any, in their Capital Accounts will be adjusted through Current Accounts.
Prepare necessary Ledger Accounts and draw the Balance Sheet of the reconstituted firm.