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.
Solution :-
