Question

A m and j are partners in a firm . M retaires from the firm .On the date of retairements rs 60000 become due to him a and j promise to pay him in installments every year at the end of the year. Prepare m s loan a/c

Answer 1

RETIREMENT OR DEATH OF A PARTNER – SOLUTION

RETIREMENT AND DEATH OF PARTNER (Solution)

Ans 1. (a) Partner’s capital A/C Dr

To partner’s loan A/C

(This entry is required when the amount due is transferred to retiring partner’s loan A/C)

(b) Stock A/C ………..Dr

Building A/C……..Dr

To Revaluation A/C

(This entry is required when the stock and building are appericiated)