Q. 50 DK Goel Retirement of Partner Solutions Class 12 CBSE (2024-25)

Here are the solutions of Question number 50 of Retirement of Partner chapter 5 of DK Goel Class 12 CBSE (2024-25)

Following is the Balance Sheet of G, K & W as at 31st March, 2019 who share profits in the ratio of 3 : 2 : 1.

Liabilities	₹	Assets	₹
Capital Accounts: G K W	22,000 13,000 9,000	Goodwill	7,500
Sundry Creditors	10,000	Stock	12,500
Bills Payable	4,000	Sundry Debtors	12,000
General Reserve	12,000	Land and Buildings	15,000
		Plant and Machinery	18,000
		Motor Vehicle	5,000
	70,000		70,000

On 1st April, 2019, G retired and the following arrangements were agreed upon:

(1) Goodwill of the firm is to be valued at ₹ 15,000.

(2) The assets and liabilities are to be valued as under; Stock ₹ 10,000; Sundry Debtors ₹ 11,500; Land and Buildings ₹ 18,000; Plant and Machinery ₹ 16,500; and Sundry Creditors ₹ 9,200.

(3) Liability for Workmen’s Compensation amounting to ₹ 500 is to be brought into the books.

(4) The entire capital of the firm as newly constituted be fixed at ₹ 35,000 between K and W in the proportion of 4 : 3 and the actual cash to be paid off or to be brought in by continuing partners as the case may be.

(5) ₹ 13,150 were paid to G. The balance due to him was to be paid in three equal installments annually together with interest @ 12% per annum.

Give necessary ledger accounts, the Balance Sheet of the firm after G’s retirement and G’s Loan Account till it is finally paid off.

[Ans. Loss on Revaluation ₹ 1,200; Balance of G’s Loan A/c on 1st April, 2019 ₹ 18,000; Capital Accounts : K ₹ 20,000 and W ₹ 15,000; Cash brought in by K ₹ 10,900 and W ₹ 7,950; Cash Balance ₹ 5,700; B/S Total ₹ 66,700.]

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