Radha, Sheela and Meena were in partnership sharing profits and losses in the proportion of 3:2:1. On April 1, 2007, Sheela retires from the firm. On that date, their Balance Sheet was as follows:
|Trade creditors||3,000||cash in hand||1,500|
|Bills payable||4,500||cash at Bank||7,500|
The terms were
(a) Goodwill of the Firm was valued at ? 13,000.
(b) Expenses owing to be brought down to? 3,750.
(c) Machinery and Loose Tools are to be valued at 10% less than their book value.
(d) Factory premises are to be revalued at ? 24,300. Prepare
1. Revaluation account
2. Partners capital accounts
3. Balance sheet of the firm after retirement of Sheela