24 :- Sangeeta, Saroj and Shanti are partners sharing profits and losses in the ratio of 5:3:2. Shanti retired and on the date of her retirement, following adjustments were agreed
(a) The value of furniture is to increased by Rs 12,000.
(b) The value of stock is to be decreased by Rs 10,000.
(c) Machinery of the book value of Rs 50,000 is to be reduced by 10%.
(d) A provision for doubtful debts @5% is to be created on debtors of book value of Rs 40,000.
(e) Unrecorded investments worth Rs 10,000.
(f) A creditor of Rs 1,000 is not likely to be claimed, hence, is to be written back.
Pass necessary journal entries.
25 :- Leena, Madan and Naresh were partners sharing profits and losses in the ratio of 2:2:1. Madan retired on 31st March 2024. On the date of his retirement, some of the assets and liabilities appeared in the books as follows
Creditors Rs 70,000; Building Rs 1,00,000; plant and machinery Rs 40,000; Stock of raw materials Rs 20,000; Stock of finished goods Rs 30,000 and Debtors Rs 20,000
Following was agreed among the partners on Madan’s retirement
(a) Building to be appreciated by 20%
(b) Plant and machinery to be reduced by 10%
(c) A provision of 5% on debtors to be created for doubtful debts
(d) Stock of raw materials to be valued at Rs 18,000 and finished goods at Rs 35,000
(e) An old computer previously written off was sold for Rs 2,000 as scrap.
(f) Firm had to pay Rs 5,000 to an injured employee
Pass the necessary journal entries to record the above adjustments and prepare the revaluation account.
26 :- Punit, Ramit and Akshit were partners sharing profits equally. Akshit retired on 1st April 2024 Punit and Ramit decided to continue the business and share profits in the ratio of 3:2. They also decided to give effect to the change in values of assets and liabilities without changing their book values.
The book values and their revised values were as follows:
Pass an adjustment entry.