Chapter 4, Reconstitution of Partnership, (Retirement of Partner), Practical Problems, [Pages 183 – 186],

The Balance Sheet of the Anu, Renu, and Dinu is as follows, the partners are sharing profits and losses in the proportion of 2:2:1 respectively. Practical Problems | Q 3 | Page 184 Retirement of Partner

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board 

Chapter 4 Reconstitution of Partnership (Retirement of Partner) Practical Problems [Pages 183 – 186]

Practical Problems | Q 3 | Page 184

The Balance Sheet of the Anu, Renu, and Dinu is as follows, the partners are sharing profits and losses in the proportion of 2:2:1 respectively.

Dinu retires from the firms on 1^st April 2019 on the following terms.

1. The assets are to be revalued as freehold property  ₹ 30,000, Machinery  ₹ 5000, Furniture ₹ 12000, All debtors are good.

2. Goodwill of the firm is valued at thrice the average profit for the preceding five years. Profits of the firm for the year.

2014-15	₹ 1,000
2015-16	₹ 10,500
2016-17	₹ 10,000
2017-18	₹ 16,000
2018-19	₹ 10,000

3. Dinu should be paid ₹ 3,000 by cheque

4. The Balance of Dinu’s capital A/c should be kept in the business as a loan.

Prepare:

Profit and loss adjustment A/c,

Capital Accounts of partners,

Balance Sheet of the new firm

Solution

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