Q. 55 DK Goel Retirement of Partner Solutions Class 12 CBSE (2024-25)
Here are the solutions of Question number 55 of Retirement of Partner chapter 5 of DK Goel Class 12 CBSE (2024-25)
Radha, Manas and Arnav were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2019 was as follows:
Balance Sheet of Radha, Manas and Arnav as at 31st March, 2019
| Liabilities | ₹ | Assets | ₹ |
| Capitals: Radha Manas Arnav | 4,00,000 3,00,000 2,00,000 | Furniture | 4,60,000 |
| Investment Fluctuation Fund | 1,10,000 | Investments | 2,00,000 |
| Creditors | 2,50,000 | Stock | 2,40,000 |
| Sundry Debtors 2,20,000 Less: Provision for Doubtful Debts 10,000 | 2,10,000 | ||
| Cash | 1,50,000 | ||
| 12,60,000 | 12,60,000 |
Manas retired on 1st April, 2019. It was agreed that:
(I) Stock was to be appreciated by 20%.
(ii) Provision for doubtful debts was to be increased to ₹ 15,000.
(iii) Value of furniture was to be reduced by ₹ 3,000.
(iv) Market value of investments was ₹ 1,90,000.
(v) Goodwill for the firm was valued at ₹ 2,00,000 and Manas’s share was adjusted in the accounts of Radha and Arnav.
(vi) Manas was paid ₹ 68,000 in cash and the balance was transferred to his loan account.
(vii) Capitals of Radha and Arnav were to be in proportion to their new profit sharing ratio. Surplus/deficit, if any, in their capital accounts was to be adjusted through current accounts.
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the reconstituted firm.
[Ans. Gain on Revaluation ₹ 40,000; Manas Loan A/c ₹ 3,00,000; Capital A/cs: Radha ₹ 5,04,000 and Arnav ₹ 1,68,000; Current A/cs: Radha ₹ 50,000 (Dr.), Arnav ₹ 50,000 (Cr.); Balance Sheet Total ₹ 12,72,000.]
Solution:-
