Question

Harish, Paresh and Mahesh were three partners sharing profits and losses in the ratio of 5:4:1.
Paresh retired on 31st March, 2017. His capital on 1st April, 2016 was 80,000. During the year 2016-
17, he made drawings of 5,000. He was to be charged interest on drawings of 100.
The partnership deed provides that on the retirement of a partner, he will be entitled to:
(i) His share of capital.
(ii) Interest on capital @ 10% per annum.
(iii) His share of profit for the year of his retirement.
(iv) His share of goodwill in the firm.
(v) His share in the profit/loss on Revaluation of Assets and Liabilities.
Additional information :
(a) Profits of the firm for the year 2016-17 was 50,000.
(b) Goodwill of the firm was valued at 24,000.
I
(c) The firm suffered a loss of 12,000 on the Revaluation of Assets and Liabilities.
(d) It was decided to transfer the amount due to Paresh to his loan account bearing interest @ 6%
per annum
The loan was to be repaid in two equal annual instalments, the first instalment to be paid on 31
March, 2018​

Answer 1

Crossed cheque: Crossing of cheque means drawing two parallel lines on the left corner of the cheque with or without additional words like “Account Payee Only” or “Not Negotiable”. A crossed cheque cannot be encashed at the cash counter of a bank but it can only be credited to the payee's account.