The post-closing trial balance of M/S. Sun Traders at 31 March 2020 is set out below...

The post-closing trial balance of M/S. Sun Traders at 31 March 2020 is set out below
Sun Tarders
Post Closing Trial Balance
As on 31St March 2020

Particular	Debit	Credit
Cash at Bank	1,000
Sundry Debtors	11,000
Stock	15,000
Motor Vehicle	10,000
Profit and loss accounts	3,000
Plant & Equipment	26,500
Land & Building	20,000
Goodwill	10,000
Sundry Creditors		15,000
Bills Payable		6,000
General Reserve A/c		10,500
Akbar, Capital		30,000
Babar ,Capital		20,000
Khan , Capital		15,000
	96,500	96,500

On the above date, Akbar retired, and the following arrangements were agreed upon:
a. Goodwill of the firm is to be valued at OMR 24,000.
b. The assets and liabilities are to be valued as: Stock OMR 12,000, Sundry Debtors
OMR.10,500, Land and Building OMR 22,600, Plant and Machinery OMR25,000 and
Sundry Creditors OMR 14,000.
c. To bring into books unrecorded investments OMR 1,000
d. Babar and Khan were to introduce OMR20,000 and OMR5,000 respectively into the business and OMR16,200 was to be paid immediately and balance transfer to loan accounts.
e. Bills payable were unrecorded to the extent of OMR1,000
f. Babar and Khan agreed not to retain goodwill in books.
g. Akbar, Babar and Khan profit and loss sharing ratio are 4:2:1 respectively.

You are required to pass necessary Journal entries with proper narrations to record the above transactions. Prepare revaluation account, capital accounts, bank account and financial position of the new firm as at 1st April 2020, after all above arrangement have been completed. Write down the impact of retirement with explanations values in the new balance sheet.

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ekkarill92 answered 1 year ago

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