Question

Retirement Death of a Partner
A, B and Care in partnership, sharing profit & loss in the ratio of their capital. The
following is their Balance Sheet as on 31st March, 2018
Balance Sheet
(As on 31st March, 2018)
Amount
13.300 Cash in hand
3.200
5.000
Sundry Creditors
Bills Payable
Bank Overdraft
Employee's Provident Fund
Reserve for Depreciation on
Plant
Capital a'cs
A
18,000
10.000 Bills Recente
6.500 Sundry Deton 17.000
1.500 | Les Reserve
1.700
Stock in hand
1.500 Furniture and Fixtures
Plant and Machinery
Freehold Premises
19 300
12,600
3.700
7.000
13,000
B
6,000
C.
3.000
27,000
59.800
99,800
Cretires from the business and A and B agree to continue the business taking ove
the assets and liabilities subject to the following adjustments :
(1) Provision of 180 for Doubtful Bills should be made.
(2) Reserve for Doubtful Debts to be maintained at 5% only on Sundry Debtors.
(3) Freehold Premises are worth 16,000.
(4) Creditors worth 250 have not been recorded in the books.
(5) Goodwill is to be calculated at two years purchase of the average profits of
last three years. The profits of the last three years were 13,000 7 13. 500​

Answer 1

Answer:

$18000 + 10.000 \times 6.500 \div 17.000 - 1.500 - 1.700 =$

1,800.6235294