P, Q and R are in partnership sharing profits in the ratio of 3 : 2 : 1. R retires. Following balances appeared in their books:
P, Q and R are in partnership sharing profits in the ratio of 3 : 2 : 1. R retires. Following balances appeared in their books:
|  | ₹ | ₹ |
| Goodwill | 12,000 | Â |
| Bank | 10,000 | Â |
| Other Assets | 70,000 | Â |
| Creditors | Â | 14,000 |
| Capitals P Q R | Â | 40,000 20,000 18,000 |
| Â | 92,000 | 92,000 |
Goodwill is agreed at ₹ 30,000. Sufficient money is to be introduced so that R is paid off and leave ₹ 4,000 in cash at Bank. P and Q are to provide such sum as will make their capitals proportionate to their share of profits. Prepare necessary entries and the new balance sheet. [Ans. Amount paid to R ₹ 21,000; Final Capitals P ₹ 36,000; Q ₹ 24,000. P brings in ₹ 5,000 and Q ₹ 10,000. B/S total ₹ 74,000.]
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