A, B and C are in partnership sharing profits in their capital ratio. The Balance sheet on 15th March, 2013 is given below.
Further information on the retirement of B on 15th June, 2013.
Profits for 3 months Rs. 9000 Drawings
A Rs. 1,000
B Rs. 2,000
C Rs. 3,000
Interest on Capital @ 5% p.a.
Salary to B Rs. 300 p.m.
The firm had a fixed deposit worth Rs.3000 which has not accounted so far has to be brought into the books. Marketable scrips were valued at Rs. 23,000. Prepare Profit and Loss Appropriation account, Capital account and Balance Sheet after ‘B’s retirement.