Rajesh, Sathish and Mathan are partners sharing profits and losses in the ratio of 3:2:1 respectively. Their balance sheet as on 31.3.2017 is given below
| Liabilities |
Rs |
Rs |
Asset |
Rs |
Rs |
| Capital accounts: |
|
|
Premises |
|
4,00,000 |
| Rajesh |
4,00,000 |
|
Machinery |
|
4,20,000 |
| Sathish |
3,00,000 |
|
Debtors |
|
1,60,000 |
| Mathan |
2,50,000 |
9,50,000 |
Stock |
|
3,00,000 |
| General reserve |
|
1,20,000 |
Cash at bank |
|
20,000 |
| Creditors |
|
50,000 |
|
|
|
| Bills payable |
|
1,80,000 |
|
|
|
| |
|
13,00,000 |
|
|
13,00,000 |
Mathan retires on 31st March, 2017 subject to the following conditions:
(i) Rajesh and Sathish will share profits and losses in the ratio of 3:2
(ii) Assets are to be revalued as follows:
Machinery Rs. 3,90,000, Stock Rs. 2,90,000, Debtors Rs. 1,52,000.
(iii) Goodwill of the firm is valued at Rs. 1,20,000
Prepare necessary ledger accounts and the balance sheet immediately after the retirement of Mathan.
