The Balance Sheet of Sanjiv, Rajiv and Satish is as follows:
The Balance Sheet of Sanjiv, Rajiv and Satish is as follows:
| Liabilities | ₹ | Assets |  | ₹ |
|
Trade Creditors Capital A/cs: Sanjiv Rajiv Satish |
70,000 1,25,750 1,00,000 85,000 |
Freehold Property Plant Stock Sundry Debtors Less: PDD Cash at Bank |
62,500 1,000 |
90,000 1,50,000 55,000 61,500 24,250 |
| Â | 3,80,750 | Â | Â | 3,80,750 |
Rajiv agrees to take over the business. Sanjiv and Satish retiring on the following terms:
(i) Goodwill of the firm be valued at ₹ 75,000.
(ii) Plant and Stock be reduced by 10%.
(iii) Freehold Property be appreciated by ₹ 10,000.
(iv) Provision for Doubtful Debts be brought up to ₹ 2,500.
(v) Rajiv has to bring in sufficient cash to pay off Sanjiv and Satish. The partners used to share profits in the proportion of 2/5, 2/5 and 1/5.
Show necessary Journal entries, Partner’s Capital Accounts and Balance Sheet of Rajiv after retirement of Sanjiv and Satish. 
Anurag Pathak Changed status to publish March 3, 2024
