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Particular Amount Particular Amount

Capital Land $80,000$

Abdullah $144,000$ Building $76,000$

Suhail $83,000$ Plant & machinery $93,000$

Rahaman $69,000$ Furniture $15,400$

Reserve fund $36,000$ Stock $37,000$

Sundry creditors $24,800$ Sundry debtors $34,400$

Outstanding expenses $3,200$ Cash in hand $24,200$

$360,000360,000$

The Balance Sheet of Abdullah, Suhail & Rahman, as on December $31,2021,$ is given below.They are sharing profits in the ratio $5$:$3$:$2.$

Suhail retires on March $31,2022,$ date and the following adjustments are agreed upon his retirement.

$1.$ Stock was valued at OMR $34,400.$

$2.$ Furniture and fittings were valued at OMR $16,000.$

$3.$ Profit share of Suhail till the date of his retirement is to be calculated based on firm$$s last year profit which is OMR $40,000.$

$4.$ An amount of OMR $2,000$ due from a debtor was doubtful and a provision for the same was required.

$5.$ Suhail was paid OMR $8,000$ immediately on retirement and the balance was transferred to his loan account.

$6.$ Abdullah and Rahman were to share future profits in the ratio of $3$:$2.$ Required: Prepare Revaluation Account, Capital Account and Balance Sheet of the reconstituted firm.

Required:

Prepare revaluation account, capital account and balance sheet of the reconstituted firm.

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