Sameer, Yasmin and Saloni were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 31.3.2016, their Balance Sheet was as follows:
Sameer, Yasmin and Saloni were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 31.3.2016, their Balance Sheet was as follows:
On the above date, Sameer retired and it was agreed that:
(i) Debtors of ₹ 4,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.
(ii) An unrecorded creditor of ₹ 20,000 will be recorded.
(iii) Patents will be completely written off and 5% depreciation will be charged on stock, machinery and building.
(iv) Yasmin and Saloni will share profits in the ratio of 3 : 2.
(v) Goodwill of the firm on Sameer’s retirement was valued at ₹ 5,40,000.
Pass necessary journal entries for the above transactions in the books of the firm on Sameer’s retirement.
[Ans. Loss on Revaluation ₹ 1,08,300; Amount transferred to Sameer’s Loan A/c ₹ 4,76,680.]
Balance Sheet of Sameer, Yasmin and Saloni as at 31st Marc
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 1,10,000 | Cash | 80,000 |
| General Reserve | 60,000 | Debtors 90,000 Less: 10,000 | 80,000 |
| Capitals: Sameer Yasmin Saloni | 3,00,000 2,50,000 1,50,000 | Stock | 1,00,000 |
| Machinery | 3,00,000 | ||
| Building | 2,00,000 | ||
| Patents | 60,000 | ||
| Profit and Loss Account | 50,000 | ||
| 8,70,000 | 8,70,000 |
Anurag Pathak Answered question 1 day ago
