Sarthaks Test
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X, Y and Z are partners sharing profits and losses in the ratio of 5:3:2. Z retires and on the date of his retirement, the following adjustments were agreed upon: 

a. The value of Furniture is to be increased by Rs.12,000. 

b. The value of stock to be decreased by Rs.10,000. 

c. Machinery of the book value of Rs.50,000 is to be depreciated by 10%. 

d. A Provision for Doubtful Debts @ 5% is to be created on debtors of book value of 40,00G 

e. Unrecorded investment worth Rs.10,000. f. An item of Rs.1,000 included in bills payable is not likely to be claimed, hence should be written back. 

Pass necessary Journal entries.

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Revaluation Account

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