Piu and Nina are partners in a firm sharing profits and losses in the ratio of 3 : 1 respectively. Nina retires and her claim, including her capital and entitlements

Piu and Nina are partners in a firm sharing profits and losses in the ratio of 3 : 1 respectively. Nina retires and her claim, including her capital and entitlements from the firm including her share of goodwill of the firm, is ₹ 60,000.

After this amount was determined, it was found that there was some unrecorded office equipment valued at ₹ 18,000 which had to be recorded.

Upon recording this office equipment, the revised amount due to Nina was determined and Piu settled it by giving Nina this office equipment and for the balance she drew a promissory note.

You are required to give the necessary journal entries to record the transactions on the date of Nina’s retirement.

[Ans. Amount due to Nina is settled by giving her equipment valued at ₹ 18,000 and B/P of ₹ 46,500.]