X, Y , and Z are partners sharing profits and losses in the ratio of 2:2:1 . Their balance sheet as at 31st march 2012 was :

Liabilities = Creditors - 49000, Reserve - 18500, Capital accounts : X - 82000; Y- 60000 ; Z- 75500 , TOTAL = 285000

Assets = Cash- 8000, debtors - 19000, Stock - 42000, building - 207000, Patents - 9000, TOTAL= 285000

Y retired on 1st april 2012 on the following terms :

(a). Goodwill of the firm was valued at Rs.70000 and was not to appear in the books.

(b). Bad debts amounted to rs.2000 were to be written off.

(c). Patents were considered as valueless.

Prepare the revalutaion account , partners capital account and the balance sheet of X and Z after Y's retirement.

Revaluation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Debtors

2,000

Loss on Revaluation transferred

Patents

9,000

to Partners’ Capital Account

X

4,400

Y

4,400

Z

2,200

11,000

11,000

Partners’ Capital Accounts

Dr.

Cr.

Particulars

X

Y

Z

Particulars

X

Y

Z

Revaluation

4,400

4,400

2,200

Balance b/d

82,000

60,000

75,500

Y’s Capital (Goodwill)

18,667

9,333

Reserve (Old Ratio)

7,400

7,400

3,700

Y’s Loan

91,000

X’s Capital (Goodwill)

18,667

Balance c/d

66,333

67,667

Z’s Capital (Goodwill)

9,333

89,400

95,400

79,200

89,400

95,400

79,200

Balance Sheet

as on March 31,2012 after Y’s retirement

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

49,000

Cash

8,000

Y’s Loan

91,000

Debtors (19,000 – 2,000)

17,000

Capital Accounts

Stock

42,000

X

66,333

Building

20,7,000

Y

67,667

1,34,000

2,74,000

2,74,000

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

X’s Capital A/c

Dr.

18,667

Z’s Capital A/c

Dr.

9,333

To Z’s Capital A/c

28,000

(Z’s share of goodwill adjusted)