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Chapter 6 Retirement of a Partner 6.25
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On Vivek’s retirement it was agreed that:
(a) Premises will be appreciated by 5% and Furniture will be appreciated by ` 2,000. Stock will be reduced
by 10%.
(b) Provision for Doubtful Debts was to be made at 5% on Debtors and Provision for Legal Damages to be
increased up to ` 14,400.
(c) Goodwill of the firm was valued at ` 48,000.
(d) ` 50,000 from Vivek’s Capital Account will be transferred to his Loan Account and the Balance be paid
by cheque.
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet after Vivek’s retirement.
[Ans.: Gaining Ratio—2 : 1; Revaluation Profit—` 7,700; Partners’ Capital A/cs:
Vijay—` 82,280, Vinay—` 35,140, Payment to Vivek—` 32,280;
Total of Balance Sheet—` 2,64,220.]
