Question

Ashok Bhaskar and Chaman are partners in a firm, sharing profits and losses as Ashok 1/3, Bhaskar 1/2, and
Chaman 1/6 respectively The Balance Sheet of the firm as at 31st March, 2020 was
Chapter 6 Retirement of a Partner 6.59
Assets
al Reserve
Briyanator
Building
5,00,000
3.00,000
Plant and Machinery
4,00,000
400,000
Furniture
1,00,000
2,50,000 9,50,000 Stock
2,50,000
2.20.000 Debtors
1,80,000
2,50,000 Less Provision for Doubtful Debts 5,000 1.75,000
1.50,000 Cash in Hand
85,000
Advertisement Suspense Account
60,000
15,70,000
15,70,000
Charan retired on 1st April, 2020 subject to the following adjustments:
w Goodwill of the firm be valued at ? 240,000. Chaman's share of goodwill be adjusted into the Capital
Accounts of Ashok and Bhaskar who will share future profits in the ratio of 3 2
b) Plant and Machinery to be reduced by 10% and Furniture by 5%.
Id Stock to be increased by 15% and Building by 10%.
Id Provision for Doubtful Debts to be raised to 20,000,
Pass Journal entries to record the above transactions in the books of the firm and show the Profit and
Lost Adjustment Account Capital Account of Chaman and the Balance Sheet of the firm after Chaman's
retirement

Answer 1

Answer:

Revaluation:-(profit) 27,500

Chaman's loan:-3,21,250

Partner's capital account:- 5,17,750

Balance sheet:- 15,37,500