38 :- Ashok, Bhaskar and Chaman were in partnership sharing profits and losses equally. ‘Bhaskar’ retires from the firm. After adjustments, his capital account shows a credit balance of Rs 3,00,000 as on 1st April, 2020. Balance due to ‘Bhaskar’ is to be paid in three equal annual installments along with interest @10% p.a. Prepare Bhaskar’s loan account until he is paid the amount due to him. The firm closes its books on 31st March every year.
39 :- Rakesh retired from the firm. The amount due to him was determined at Rs 90,000. It was decided to pay the due amount as follows:
On the date of retirement – Rs 30,000
Balance in three yearly installments – First two installments being of Rs 26,000, including interest; and balance amount as last installments.
Interest was payable @10% p.a. Prepare Retiring Partner’s loan account.
40 :- Ram, Manohar and Joshi were partners in a firm. Manohar retired and his claim including his capital and share of goodwill was Rs 1,80,000. There was an unrecorded furniture estimated at Rs 9,000, half of which was given for an unrecorded liability of Rs 18,000 in settlement of claim of Rs 9,000 and remaining half was taken by Manohar at a discount of 10% in part satisfaction of his claim. Balance of Manohar’s claim was discharged by bank draft. Pass necessary journal entries to record the above transactions.
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.