A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 3. Their Balance Sheet as at 31st March, 2019 is :

( Rs.)
( Rs.)
Creditors7,000Land and Building36,000
Bills Payable3,000Plant and Machinery28,000
Reserves20,000Computer Printer8,000
Capital A/c :Stock20,000
A32,000Sundry Debtors – 14,000
B24,000Less: Provision for Doubtful Debts – (2,000)12,000
 1,06,000 1,06,000

On 1st April, 2019, B retired from the firm on the following terms:
(a) Goodwill of the firm is to be valued at Rs. 14,000.
(b) Stock, Land and Building are to be appreciated by 10%.
(c) Plant and Machinery and Computer Printer are to be reduced by 10%.
(d) Sundry Debtors are considered to be good.
(e) There is a liability of Rs. 2,000 for the payment of outstanding salary to the employees of the firm. This liability was not provided in the Balance Sheet but the same is to be recorded now.
(f) Amount payable to B is to be transferred to his Loan Account.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of A and C after B’s retirement.


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