Retirement of Partner


Omtex classes               

1. Sanil, Nitish, Sapna were partners in a firm sharing profits and losses in the proportion of 1/2 , 1/3, 1/6 respectively. Their Balance Sheet as on 31st March, 2012 was as follows:
Balance Sheet as on 31 - 03 - 2012

Liabilities
Amount
Assets
Amount
Bills Payable
Capitals:
Sanil
Nitish
Sapna
30000

80000
50000
30000
Machinery
Furniture
Sundry Assets
Stock
Debtors
Bank
40000
5000
60000
30000
32000
23000

190000

190000
Sapna decided to retire on 1st April, 2012 on following terms:
1. Goodwill of the firm will be valued at Rs. 30,000.
2. Furniture war taken over by Sanil for Rs. 4,700.
3. Make a Provision for unpaid expenses Rs. 1,700.
4. Out of the amount due to Sapna Rs. 7,500 to be paid by cheque and the remaining amount to be transferred to her loan account.
Prepare Profit and Loss Adjustment Account, Partners’ Capital Accounts and Balance sheet of New firm on 1st April, 2012.

2. Pai, Amba and Manoj are partners in a firm sharing profit and losses in the proportion to their capitals. Their Balance Sheet as on 31st March 2012 is as follows.

Liabilities
Amount
Assets
Amount
Capitals:
Pai
Amba
Manoj
Creditors
Outstanding Expenses
Profit and Loss A/c

30000
30000
15000
7000
15000
20000
Cash
Stock
Debtors
Plant
Building
Motor Van
Goodwill
3000
12000
20000
13000
20000
31000
18000

117000

117000
On the above date Pai retired and the following adjustments have been agreed upon.
  1. Goodwill was valued at Rs. 15,000
  2. Assets and liabilities were revalued as under Debtors Rs. 17,000 stock at 90% of book value Building Rs. 35,000. Plant Rs. 11500, Motor Van Rs. 29500 and outstanding expenses Rs. 18,000.
  3. Amba and Manoh contributed additional capital of Rs. 20,000 and Rs. 10000 respectively.
  4. Balance due to Mr. Pai is transferred to his loan account after paying him Rs. 1000.
Prepare: Profit and loss Adjustment A/c, Partner’s Capital A/c and balance Sheet of new firm.

3. Shailesh, Anil and Das were partners sharing profits and losses in the ratio at 3:3:2. Their Balance sheet as on 31 - 03 - 2012 is as follows.

Liabilities
Amount
Assets
Amount
Capitals:
Shailesh
Anil
Das
Bills Payable
Creditors
Reserve Fund

11000
15000
8000
1900
9000
4000
Building
Machinery
Furniture
Denbtors
Stock
Cash
10000
10700
10000
5000
6600
6600

48900

48900
On 1st April, 2012 Mr. Das retired from the firm on the following terms:
  1. Shailesh and Anil’s Share in reserve fund should be continued in the new firm.
  2. Goodwill of the firm is to be valued at Rs. 4000, however, only Das’s share in it is to be raised in the books and written off immediately.
  3. Assets to be revalued as under: Stock Rs. 6,300, Machinery Rs. 10,000, Furniture Rs. 10,200.
  4. R.D.D. to be maintained at 10% on Debtors.
  5. Rs. 100 to be written off from Creditors.
  6. The Amount payable to Mr. Das is to be transferred to his loan account.
Prepare : Profit and loss account, Partners Capital Account and Balance Sheet of the new firm on 1st Aprl, 2012.  

4. Shedge, Mayekar and Raut were partners sharing profits and losses in the ratio of 4: 3: 3. Their Balance Sheet on 31 st March, 2012 was as given below:
Balance Sheet as on 31-03-2012

Liabilities
Amount
Assets
Amount
Capitals:
Shedge
Mayekar
Raut
Creditors
Bank Overdraft

15000
10000
10000
8000
10000
Furniture
Stock
Debtors
Bills Receivable
Cash/ bank
Profit and loss A/c(Loss)
4200
13000
10000
18000
2000
5800

53000

53000
Raut retired from the business on the above date and it was agreed that the amount due to Raut to be paid immediately by availing of the overdraft facility. The following adjustments are to be considered:
  1. His share of Goodwill was raised at Rs. 3500.
  2. Revalue furniture Rs. 4000 and stock Rs. 16,000.
  3. Create R.D.D. at 5% on Debtors.
  4. Make Provision for outstanding printing bill Rs. 6000.
Prepare Profit and Loss Adjustment A/c. Capital Accounts and Balance sheet of continuing partners assuming that goodwill is written off by the continuing partners.

5. Sathe, Deshpande and Wandrekar were partners sharing profits and losses in the ratio of 5: 2: 3. Their Balance sheet was as follows:
Balance Sheet as on 31st March, 2012

Liabilities
Amount
Assets
Amount
Amount
Capital A/c
Sathe
Deshpande
Wandrekar
Creditors
Bills Payable
Reserve Fund

70000
80000
50000
25000
12000
25000
Plant and machinery
Building
Motor Van
Stock
Debtors
Less: RDD
Cash



36000
-2000
50000
100000
20000
30000

34000
28000

262000


262000
Deshpande retired on that date on the following terms:
  1. Plant to be depreciated by 10% and Motor Van by 20%.
  2. Stock to be appreciated by 10% and building by 20%.
  3. R.D.D. is no longer necessary.
  4. Provision is to be made for Rs. 8000 being compensation to workers.
  5. The goodwill of the firm to be valued at Rs. 40000 and Deshpande’s Share in it should be raised.
  6. Both the remaining partners decided to write off the goodwill.
  7. Amount payable to Shri. Deshpande is to be kept as his loan.
Prepare : Profit and loss adjustment account, partners Capital accounts , new balance sheet.