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.