Question

X, Y and Z are partners in a firm. Y retires and his claim including his capital and his share
of goodwill is * 3,00,000. There was unrecorded furniture valued at 15,000, half of
which was given to an unrecorded creditor of 30,000 in settlement of his claim of 15,000
and remaining half was given to Y at a discount of 10% in part satisfaction of his claim. Balance
of Y's claim was discharged by current date cheque.
Give necessary Journal entries to record this arrangement.
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Answer 1

Answer:

Y retires and his claim including his capital and his share Of goodwill is R. 3,60,000. He is paid partly in cash and partly in kind.

Explanation: