Question

retirement
23 Ram. Shyam and Mohan are partners sharing profits in the ratio of 5 : 3 : 2. Mohan retired on
1st April
, 2020 from business. The Balance Sheet stood as at 31st March, 2020 as under.
Assets
Trade Creditors
Bils Payable
General Reserve
Workmen Compensation Reserve
Capital A/cs:
Ram
Shyam
Mohan
1,98,000
92,500
1,00.000
67,500
Cash
Bank
Sundry Debtors
Stock
Furniture
Computers
Plant and Machinery
Land and Building
Investments
4,00,000
6,00,000
2,00,000
55,000
161,500
3,40.000
1,81,000
1,82,500
1,32,000
2,02,300
2.60,000
1,43,700
16,58,000
12,00,000
16,58,000
(1) The assets on Mohan's retirement are to be revalued as follows:
Stock
2,00,000
Plant and Machinery
2.35,300
Land and Building
2,00,000
Furniture
1,42,500
(10) A sum of 17,000 is to be written off from Sundry debtors.
() Goodwill of the firm be valued at 90,000 and Mohan's share in it be adjusted into the Capital
Accounts of Ram and Shyam.
The continuing partners agreed to pay * 1,65,000 on retirement of Mohan, to be contributed by the
continuing partners in their new profit-sharing ratio which is 3:2. The balance in the Capital Account
of Mohan is to be taken as loan.
Give Journal entries, prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of
reconstituted firm.
14
TH
Data
Vin Diint and Satish is as follows:​

Answer 1

Answer:

Ram, Shyam and Mohan are partners sharing profits in the ratio of 5: 3: 2. Mohan retired on 1st April, 2020 from business. The Balance Sheet stood as at 31st March, 2020 as under: Labilities Assets Trade Creditors Bls Payable General Reserve Workmen Compensation Reserve 1,98,000 Cash 55,000 92,500 1,00,000 Bank 1,61,500 Sundry Debtors 67,500 Stock 3,40,000 1,81,000 Capital A/cs: Furniture 4,00,000 1,82,500 Ram Computers Plant and Machinery Land and Building 6,00,000 1,32,000 Styam Mohan 2,00,000 12,00,000 2,02,300 2,60,000 Investments 1,43,700 16,58,000 16,58,000 (0. The assets on Mohan's retirement are to be revalued as follows: Stock Plant and Machinery Land and Building 2,00,000 2,35,300 Furniture 2,00,000 1,42,50C A sum of 17,000 is to be written off from Sundry debtors. (ii) Goodwill of the firm be valued at 90,000 and Mohan's share in it be adjusted into the Capit Accounts of Ram and Shyam. he continuing partners agreed to pay 1,65,000 on retirement of Mohan, to be contributed by condnuing partners in their new profit-sharing ratio which is 3:2. The balance in the Capital Acco of Mohan is to be taken as loan. norc' Canital Accounts and Balance She