14 Dec 2020 10:31 am
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 2 | Page 184
The Balance Sheet of Ram, Shyam, and Ghanshyam sharing profits and losses 3:2:1 respectively. Their position on 31-3-2019 were as follows.
Ghanshyam retired on 1st April 2019 on the following terms.
1. Building and Investment to be appreciated by 5% and 10% respectively.
2. Provision for Doubtful Debts to be created at 5% on Debtors.
3. The provision of ₹ 3,000 be made in respect of Outstanding Salary.
4. Goodwill of the firm is valued at ₹ 90,000 and partners decide that goodwill should be written back.
5. The amount payable to the Retiring partner be transferred to his Loan A/c.
Profit and Loss Adjustment A/c,
Partners Capital A/c,
Balance Sheet of New Firm.
Working Notes :
(1) Provision of ₹ 3,000 for outstanding salary is recorded on debit side of Profit and Loss Adjustment A/c and then on the Liability side of Balance Sheet.
(2) Goodwill of the firm is valued at ₹ 90,000 and share of retiring partner in it is ₹ 15,000 (1/6th part) and it is to be written back means it is to be shared by remaining partners in their profit-loss ratio.