41 :- Harish, Paresh and Mahesh were three partners sharing profits and losses in the ratio of 5:4:1.
Presh retired on 31st March, 2025, His capital as on 1st April 2024, was Rs 80,000. During the year 2024-25, he withdrew Rs 5,000. He was to be charged interest of Rs 100 on drawings.
The partnership deed provides that on the retirement of a partner , he will be entitled to :
(a) His share of capital
(b) Interest on capital @10% per annum
(c) his share of profit in the year of retirement
(d) his share of goodwill of the firm.
(e) His share in the profits/loss on revaluation of assets and liabilities
Additional information
Paresh’s share in the profit of the firm for the year 2024-25 was Rs 20,000
Goodwill of the firm was valued at Rs 24,000
The firm incurred loss of Rs 12,000 on the revaluation of assets and liabilties
Paresh was to be paid Rs 7,700 in cash and the balance was to be transferred to his Loan account bearing interest @6% per annum. Loan was to be repaid in two equal annual installments, the first installments to be paid on 31st March 2026.
You are required to prepare
(a) Paresh’s capital accounts
(b) Paresh’s loan account till it is finally closed.
Solution :-
