On 31st March, 2011 the balancce report of M/s. Ashok, Basu, and Clement, who were sharing benefits and misfortunes in extent to their capitals, remained as takes after:
On 31st March, 2011, Ashok craved to resign from the firm and the remaining accomplices chose to convey on. They concurred on the accompanying terms and conditions:
(i) Land and structures be increased in value by 30%
(ii) Machinery be devalued by 20%
(iii) Closing stock to be esteemed at Rs. 80,000.
(iv) Provision for terrible obligations be made at 5%.
(v) Old credit offsets of sundry lenders adding up to Rs. 10,000 be composed back.
(vi) Joint Life Policy of the accomplice be surrendered and money acquired was Rs. 60,000.
(vii) Goodwill of the whole firm be esteemed at Rs. 1,80,000 and Ashok's offer of the goodwill be balanced in the accounts Basu and Clement who might share the future benefits just as.
(viii) The aggregate capital of the firm was to be the same as before retirement. Singular capitals of accomplices were to be in their benefit sharing proportion.
(ix) Amount because of Ashok was to be settled on the accompanying premise: half on retirement and parity half inside of one year.
Plan Revaluation Account, Capital Accounts of the Partners, Loan Account of Ashok, Cash Book and Balance Sheet as on first April 2011 of M/s. Basu and Clement.