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 be increased by ₹ 12,000

b) The value of stock to be decreased by ₹ 10,000.

c) Machinery of the books value of ₹ 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 ₹ 40,000.

e) Unrecorded investment worth ₹ 10,000.

f) A creditor of ₹ 1,000 is not likely to be claimed, hence, is to be written back.

Pass necessary Journal entries.

Anurag Pathak Changed status to publish March 19, 2024
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