X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. Z retired and on the date of his retirement, following adjustments were agreed upon:(a) The value of Furniture is to be increased by ₹ 12,000.(b) The value of stock to be decreased by ₹ 10,000.(c) Machinery of the book value of ₹ 50,000 is to be depreciated by 10%.(d) A Provision for Doubtful Debts 5% is to be created on debtors of book value of ₹ 40,000.(e) Unrecorded Investment worth ₹ 10,000.(f) An item of ₹ 1,000 included in bills payable is not likely to be claimed, hence should be written back.Pass necessary Journal entries.

X, Y and Z are partners sharing profits and losses in the ratio of 5 :

1.	X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. Z retired and on the date of his retirement, following adjustments were agreed upon:(a) The value of Furniture is to be increased by ₹ 12,000.(b) The value of stock to be decreased by ₹ 10,000.(c) Machinery of the book value of ₹ 50,000 is to be depreciated by 10%.(d) A Provision for Doubtful Debts 5% is to be created on debtors of book value of ₹ 40,000.(e) Unrecorded Investment worth ₹ 10,000.(f) An item of ₹ 1,000 included in bills payable is not likely to be claimed, hence should be written back.Pass necessary Journal entries.
Answer» X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. Z retired and on the date of his retirement, following adjustments were agreed upon: (a) The value of Furniture is to be increased by ₹ 12,000. (b) The value of stock to be decreased by ₹ 10,000. (c) Machinery of the book value of ₹ 50,000 is to be depreciated by 10%. (d) A Provision for Doubtful Debts 5% is to be created on debtors of book value of ₹ 40,000. (e) Unrecorded Investment worth ₹ 10,000. (f) An item of ₹ 1,000 included in bills payable is not likely to be claimed, hence should be written back. Pass necessary Journal entries.

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