Question

Payment of Amount Due to the Retiring Partner
tively. The Balance Sheet of the firm as at 31st March, 2019 was as follows:
Liabilities
₹
Assets
Sundry Creditors
7,600 | Cash at Bank
Bills Payable
2,000 Debtors
Profit & Loss Alc
9,000 Less: Provision
TZOOM
Capital A/cs:
₹
Stock
P
16,000
Car
Q
12,000
Machinery
R
10,000 38,000 Buildings
Total 56,600
5,200
6,400/ KE
6.200
10,000
Yesterday
lab.
3.200 $
14,000
18,000
Total 56,600
value
Q retires on that date subject to the following conditions:
1. The goodwill of the firm to be valued at 7,200 Cherye
2. Machinery to be depreciated by 10% and Car by 15%. CV
3. The provision for doubtful debts be increased 67810 Juc laboje, les
4. Stock to be appreciated by 20% and Buildings by 10%. Present liab
5. Liability for workmen's compensation to the extent of /660 is to be brought into
account
Iner lieb.ie, loss
Pass necessary journal entries and prepare partners' capital accounts and transfer
Q's capital account balance to his loan account. Also prepare balance sheet after Q's
retirement.
Ans: [Profit on Revaluation 450; For Goodwill: Dr. P1,600 and R800; Cr. Q
*2,400; Q's Loan 17,550; Capital A/cs:P*18,600 and R 11,300; Balance
Sheet total 57,710.]
Prtars cap. Ale k left
34. P, Q and R were partners sharing profits and losses in the proportion of 4:3:2 respese​

Answer 1

Answer:

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