Case Study \( X, Y \) and \( Z \) were partners in a firm sharing profits in the proportions of \( 1 / 2,1 / 3 \) and \( 1 / 6 \) respectively. The Balance Sheet of the firm on 31st March 2001 was as follows: \( \begin{array}{lll}\text { Liabilities } & \text { Amt. } & \text { Asse } \\ \text { Trade Creditors } & 15,000 & \text { Casr } \\ \text { Employees Provident Fund } & 6,000 & \text { Debt } \\ \text { Reserve Fund } & 18,000 & \text { Less: } \\ \text { Capitals } & & \text { Stocl } \\ \text { X } & 65,000 & & \text { Inves } \\ \text { Y } & 30,000 & & \text { Patel } \\ \text { Z } & 20,000 & 115000 & \text { Plant } \\ & & \text { Goor } \\ & & 1,54,000 & \end{array} \) \( Z \) retired on the above date on the followi a) Goodwill of the firm was valued at \( R \) b) Value of patents was to be reduced machinery to \( 90 \% \). c) Provision for doubtful debts was to \( k \) d) Z took over the investments at a valu e) Liability for workmen's compensatio be created. f) Trade creditors to the extent of \( 2.5 \% \) dues. g) Amount due to \( Z \) is to be settled on tl \( 50 \% \) on retirement, \( 50 \% \) of the balance t yearly installments carrying interest at 5
