30 :- Partnership deed of C and D, who are equal partners, has a clause that any partner may retire from the firm on the following terms by giving a six-month notice in writing
The retiring partner shall paid –
(a)The amount standing to the credit of his capital account and current account
(b)His share of profit to the date of retirement, calculated on the basis of the average profit of the firm preceding completed years
(c)Half the amount of the goodwill of the firm calculated at 1.5 times the average profit of the three preceding completed years
C gave a notice on 31st March 2024, to retire on 30th september 2024, when the balance of his capital account was Rs 6,000 and his current account (Dr) Rs 500. Profits for the three preceding completed years ended 31st March, were : 2022 – Rs 2,800; 2023 — Rs 2,200 and 2024 – Rs 1,600.
Determine the amount due to C as per the partnership agreement.
31 :- Alfa, Beta and Gama are in a partnership sharing profits in the ratio of 5:3:2. Their balance sheet on 1st April 2025, the day Beta decided to retire from firm, was as follows
The terms of retirement were
(i) Beta takes goodwill from Alfa for Rs 30,000 and from Gama for Rs 40,000 for forgoing his share of profits
(ii) Stock to be appreciated by 20% and building by Rs 50,000
(iii) Investments were sold for Rs 2,70,000
(iv) Beta is paid by bank draft.
Prepare Revaluation account, Partners capital accounts and balance sheet of the new firm.
32 :- Kanika, Disha and Kabir were partners sharing profits in the ratio of 2:1:1. On 31st March, 2025, their balance sheet was as under
Kanika retired on 1st April 2025. For this purpose, the following adjustments were agreed upon
(a) Goodwill of the firm was valued at 2 years purchase of average profits of three completed years preceding the date of retirement. The profits for the year ended 31st March
2022 was loss of 20,000; 2023 was Rs 1,00,000 and for 2024 was Rs 1,30,000
(b) Fixed assets were to be increased to Rs 3,00,000
(c) Stock was to be valued at 120%
(d) The amount payable to Kanika was transferred to her loan account.
Prepare Revaluation account, Capital Accounts of the partners and the Balance Sheet of the reconstituted firm.
33 :- N, S and G were partners in a firm sharing profits and losses in the ratio 2:3:5. On 31st March, 2016 their balance sheet was under
G retired on the above date and it was agreed that
(a) Debtors of Rs 6,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.
(b) Patents will be completely written off and stock, machinery and building will be depreciated by 5%.
(c) An unrecorded creditor of Rs 30,000 will be taken into account.
(d) N and S will share the future profits in 2:3 ratio.
(e) Goodwill of the firm on G’s retirement was valued at Rs 90,000.
Pass the necessary journal entries for the above transactions in the books of the firm on G’s retirement.