Page 90 - ISCDEBK-12

Retirement of a Partner 4.17
Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars D R L Particulars D R L
` ` ` ` ` `
To D’s Loan A/c 24,000 ... ... By Balance b/d 24,000 12,000 6,000
To Balance c/d ... 12,000 6,000
24,000 12,000 6,000 24,000 12,000 6,000
By Balance b/d ... 12,000 6,000

Dr. PARTNERS’ CURRENT ACCOUNTS Cr.
Particulars D R L Particulars D R L
` ` ` ` ` `
To D’s Current A/c ... 4,800 2,400 By Balance b/d 1,920 1,680 1,120
(Goodwill: WN 1 & 2) By Revaluation A/c 1,830 1,220 610
To Bank A/c 10,950 ... ... By R’s Current A/c 4,800 ... ...
By L’s Current A/c 2,400 ... ...
By Balance c/d ... 1,900 670
10,950 4,800 2,400 10,950 4,800 2,400

BALANCE SHEET OF R AND L as at 1st April, 2018
Liabilities ` Assets `
Capital A/cs: Building 24,000
R 12,000 Plant and Equipment 15,800
L 6,000 18,000 Stock 8,000
D’s Loan 24,000 Debtors 12,400
Creditors 15,100 Less: Provision for Doubtful Debts 1,600 10,800
Outstanding Legal Charges 4,240 Balance at Bank (WN 3) 170
Current A/cs:
R 1,900
L 670 2,570
61,340 61,340
Working Notes:
1. Adjustment of Goodwill:
D’s Share of Goodwill = ` 14,400 × 3/6 = ` 7,200.
D’s Share of Goodwill is to be adjusted against the Current Accounts of R and L in their Gaining Ratio of 2 : 1.
R = ` 7,200 × 2/3 = ` 4,800; L = ` 7,200 × 1/3 = ` 2,400.
2. Computation of Gaining Ratio:
Gain = New Share – Old Share
2 2 42- 2 1 1 21− 1 2 1
R = - = = (Gain); L = − = = (Gain); Gaining Ratio = : or 2 : 1.
3 6 6 6 3 6 6 6 6 6
3. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 16,120 By D’s Loan A/c 5,000
By D’s Current A/c 10,950
By Balance c/d 170
16,120 16,120