[ISC] Q. 16 solution of Retirement of Partner TS Grewal Class 12 (2022-23)

Are you looking for the solution to Question number 16 of the Retirement of Partner Chapter of TS Grewal Book ISC Board 2022-23 session?

Sushil, Vikram and Rajat were partners sharing profits in the ratio of 2 : 2 : 1. Vikram retired on 1st April, 2022. On the date of his retirement some of the assets and liabilities in the books were:

Creditors ₹ 70,000; Building ₹ 1,00,000; Plant and Machinery ₹ 40,000; Stock of raw materials ₹ 20,000; Stock of finished goods ₹ 30,000 and Debtors ₹ 20,000.

Following was agreed among the partners on Vikram’s retirement

(i) Building to be appreciated by 20%.

(ii) Plant and Machinery to be reduced (depreciated) by 10%.

(iii) Provision of 5% on Debtors to be created for Doubtful Debts.

(iv) Stock of raw materials to be valued at ₹ 18,000 and finished goods at ₹ 35,000.

(v) An old computer previously written off was sold for ₹ 2,000.

(vi) An employee who met with accident was paid ₹ 5,000 as compensation.

Pass necessary Journal entries to record the above adjustments and prepare Revaluation Account.

Solution:-

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