X, Y and Z were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. On 31st March, 2022 their Balance Sheet was as follows:
Balance Sheet of X, Y and Z as at 31st March, 2022
|Bills Payable||29,000||Sundry Debtors||2,00,000|
|General Reserve||2,00,000||Bills Receivable||26,000|
|Z 4,00,000||10,00,000||Land and Building||3,85,000|
On the above date, Z retired on the following terms:
(i) A provision of 3% on debtors will be created for bad and doubtful debts.
(ii) Stock will be reduced by ₹5,000 and furniture by ₹2,000.
(iii) Land and building will be brought up to ₹4,00,000 and machinery will be brought down to ₹1,80,000.
Prepare Revaluation Account and Z s Capital Account, transferring the amount due to his loan account.