34 :- Ashok, Bhaskar and Chaman are partners in a firm, sharing profits and losses as Ashok 1/3 , Bhaskar 1/2 , and Chaman 1/6 respectively. The balance sheet of the firm as at 31st March, 2025, was
Chaman retired on 1st April 2025, subject to the following adjustments
(a) Goodwill of the firm be valued at Rs 2,40,000. Chaman’s share of goodwill be adjusted into the capital accounts of Ashok and Bhaskar who will share future profits in the ratio of 3:2.
(b) Plant and machinery to be reduced by 10% and furniture by 5%
(c) Stock to be increased by 15% and building by 10%
(d) Provision for doubtful debts to be raised to Rs 20,000.
Prepare revaluation account, Capital account of Chaman and the balance sheet of the firm after Chaman’s retirement.
35 :- Chintan, Ayush and Sudha were partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31st March, 2019, their balance sheet was as follows
Chintan retired on the above date and it was agreed that
- Debtors of Rs 5,000 to be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts was to be created
- Goodwill of the firm on Chintan’s retirement was valued at Rs 1,00,000 and Chintan’s share of the same will be adjusted by debiting the capital accounts of Ayush and Sudha.
- Stock was revalued at Rs 36,000
- Furniture was undervalued by Rs 9,000
- Liability for workmen compensation of Rs 2,000 was to be created
- Chintan was to be paud Rs 20,000 by cheque and the balance was to be transferred to his loan account.
Pass the necessary jounal entries in the books of the firm on Chintan’s retirement.
36 :- A, B and C are partners sharing profits and losses in the ratio of 4:3:3. Their balance sheet as at 31st March 2025 is:
On 1st April, 2025, B retired from the firm on the following terms;
(a) Goodwill of the firm is to be valued at Rs 14,000
(b) Stock, Land and building are to be appreciated by 10%
(c) Plant and machinery and computer printer are to be reduced by 10%
(d) Sundry debtors are considered to be good
(e) Provision for legal charges to be made at Rs 2,000
(f) Amount payable to B is to be transferred to his loan account.
Prepare revaluation account, partners capital accounts and the balance sheet of A and C after B’s retirement.
37 :- X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. Balance sheet of the firm as at 31st March 2025 was as follows :-
Z retired on 1st April 2025, on the following terms
(a) Goodwill of the firm is to be valued at Rs 34,800
(b) Value of patents is to be reduced by 20% and that of machinery to 90%
(c) Provision for doubtful debts is to be @6% on debtors
(d) Z took the investment at market value
(e) Liability for workmen compensation to the extent of Rs 750 is to be created.
(f) A liability of Rs 4,000 included in creditors is not to be paid.
(g) Amount due to Z to be paid as follows;
Rs 5,067 immediately, 50% of the balance within one year and the balance by a draft for 3 months
Give necessary journal entries for the treatment of goodwill, prepare revaluation account, Capital accounts and the balance sheet of the new firm.