N, S and G were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. on 31st March, 2016 their Balance sheet was as under:
Solution:-
Commerce School
Student Community
Archives Answers
Answer
Solution:-
Alfa, Beta and Gama are in partnership sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet on 1st April, 2022, the day Beta decided to retire from firm, was as follows:
Solution:-
Partnership Deed of C and D, who are equal partners, has a clause that any partner may retire from the firm on the following terms by giving a six month notice in writing: a) the amount standing to the credit of his Capital Account and Current Account. b) his share of profit to the date of retirement, calculated on the basis of the average profit of the three preceding completed years. c) half the amount of the goodwill of the firm calculated at 1 and half times the average profit of the three preceding completed years. C gave a notice on 31st March, 2022 to retire on 30th september, 2022, when the balance of his Capital Account was ₹ 6,000 and his Current Account (Dr.) ₹ 500. Profits for the three preceding completed years ended 31st March, were: 2020 – ₹ 2,800; 2021 – ₹ 2,201 and 2022 – ₹ 1,600. Determine the amount due to C as per the partnership agreement.
Solution:-
X, Y and Z were equal partners in a firm. On 31st March, 2023, their Balances Sheet was as follows:
Solution:-
A, B and C were partners, sharing profits and losses in the ratio of 2 : 2 : 1. B retired on 31st March, 2023. on the date of his retirement, some of the assets and liabilities appeared in the books as follows: Creditors ₹ 70,000; Building ₹ 1,00,000; Plant and Machinery ₹ 40,000; Stock of Raw Materials ₹ 20,000; Stock of Finished Goods ₹ 30,000 and Debtors ₹ 20,000.
Solution:-
Sangeeta, Saroj and Shanti are partners sharing profits and losses in the ratio of 5 : 3 : 2. Shanit retired and on the date of her retirement, following adjustements were agreed: a) The valueof furniture is to be increased by ₹ 12,000 b) The value of stock to be decreased by ₹ 10,000. c) Machinery of the books value of ₹ 50,000 is to be reduced by 10%. d) A Provision for doubtful debts @ 5% is to be created on debtors. e) Unrecorded investment worth ₹ 10,000. f) A creditor of ₹ 1,000 is not likely to be claimed, hence, is to be written back. Pass necessary Journal entries.
Solution:-
Asha, Naveen and Shalini were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at a value of ₹ 80,000 and General Reserve at ₹ 40,000. Naveen decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ₹ 1,20,000. The new profit sharing ratio decided among Asha and Shalini is 2 : 3. Record necessary Journal entries on Naveen’s retirement.
Solution:-
X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retired from the firm on 1st April, 2022. On the date of Z’s retirement, following existed in the books of the firm: General Reserve – ₹ 1,80,000 Profit & Loss Account (Dr.) – ₹ 30,000 Workmen Compensation Reserve – ₹ 24,000 which was no more required Employee’s Provident Fund – ₹ 20,000. Pass necessary Journal entries for the adjustment of these items on Z’s retirement.
Solution:-
Punit, Ramit and Akshit were partners sharing profits equally. Akshit retired on 1st April, 2022. Punit and Ramit decided to continue the business and share profits in the ratio of 3 : 2. They also decided to give effect to the change in values of assets and liabilities without changing their book values.
Solution:-