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
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|---|---|---|---|
| Sundry Creditors | 34,000 | Bank | 1,74,000 |
| Bills Payable | 29,000 | Sundry Debtors | 2,00,000 |
| General Reserve | 2,00,000 | Bills Receivable | 26,000 |
| Capitals : | Stock | 1,50,000 | |
| X 3,00,000 | Furniture | 1,28,000 | |
| Y 3,00,000 | Machinery | 2,00,000 | |
| Z 4,00,000 | 10,00,000 | Land and Building | 3,85,000 |
| Total | 12,63,000 | Total | 12,63,000 |
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.
Marks-5, CBSE:2021-22/Term-2/Zone-4/Set-1/Q-8*
Answer :