Ram, Manohar and Joshi were partners in a firm. Manohar retired and his claim including his capital and share of goodwill was ₹ 1,80,000

Ram, Manohar and Joshi were partners in a firm. Manohar retired and his claim including his capital and share of goodwill was ₹ 1,80,000. There was unrecorded furniture estimated at ₹ 9,000, half of which was given for an unrecorded liability of ₹ 18,000 in settlement of claim of ₹ 9,000 and remaining half was taken by Manohar at a discount of 10% in part satisfaction of his claim. Balance of Manohar’s claim was discharged by bank draft. Pass necessary Journal entries to record the above transactions.

[Ans.: Loss on Revaluation – ₹ 4,950. For Payment to Manohar: Dr. Manohar’s Capital A/c by ₹ 1,78,350; Cr. Furniture A/c by ₹ 4,050 and Bank A/c by ₹ 1,74,300.]