Retirement of a partner

• XYZ are partners sharing profits in the ratio of

3:2:1. Y retires and new ratio becomes 2:3.
GW (new) = 60000. Here X account will be
_______ by Rs ________ (credited/ 6000)
• Debtors (in balance sheet ) 50000
less provision 8000 = 48000
Adj
- Bad debt = 5000 maintain provision of 8% on
debtors. revaluation account ? Credit side 600
• What entries we pass for goodwill if ABC share
in the ratio of 5:4:1 Goodwill valued at 40000
• A) if A retires
• B) if B retires
• C) if C retires

a) B 16000
C 4000
To A 20000 c) A 2223
B 1777
To C 4000
b) A 13333
C 2667
To B 16000
• X, Y and Z are partners in a firm sharing profits
in the ratio of 3 : 2 : 1. On 1st April,
2009, Y retires from the firm. X and Z agree
that the capital of the new firm shall be fixed
at ₹ 2,10,000 in the profit-sharing ratio. The
Capital Accounts of X and Z after all
adjustments on the date of retirement
showed balance of ₹ 1,45,000 and ₹ 63,000
respectively. State the amount of actual cash
to be brought in or to be paid to the partners.

-12500/10500
A, B and C are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at 31st March, 201

B retires on 1st April, 2019 on the following terms:

(a) Provision for Doubtful Debts be raised by ₹ 1,200.
(b) Stock to be reduced by 10% and Furniture by 5%.
(c) Their unrecorded liability of ₹ 1,100 and
it is to be provided for.
(d) Creditors will be written back by ₹ 6,600.
(e) Goodwill of the firm is valued at ₹ 60,000.
(f) B is paid in full with the cash brought in by A and C
in such a manner that their capitals
are in proportion to their profit-sharing ratio and Cash in
Hand remains at ₹ 40,000.
Prepare Revaluation Account, Partners' Capital Accounts and
the Balance Sheet of A and C.
 Amount Amount
Liabilities Assets
(₹) (₹)
Creditors 30,000 Cash in Hand 18,000

Bills Payable 16,000 Debtors 25,000

General Reserve 12,000 Less: Provision for Doubtful Debts 3,000 22,000

Capital A/cs: Stock 18,000

A 40,000 Furniture 30,000

B 40,000 Machinery 70,000

C 30,000 1,10,000 Goodwill 10,000

1,68,000 1,68,000