Advertisements
Advertisements
Question
What are the ways in which the final amount due to an outgoing partner can be settled?
Solution
The amount due to the retiring partner may be settled in one of the following ways:
- Paying the entire amount due immediately in cash
- Transfer the entire amount due to the loan account of the partner
- Paying part of the amount immediately in cash and transferring the balance to the loan account of the partner.
APPEARS IN
RELATED QUESTIONS
A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the ______.
On the retirement of a partner from a partnership firm, accumulated profits and losses are distributed to the partners on the basis of ______.
On the retirement of a partner, general reserve will be transferred to the ______.
On revaluation, the increase in liabilities leads to ______.
At the time of retirement of a partner, determination of gaining ratio is required ______.
The final amount due to a retiring partner is not paid immediately, it is transferred to ______.
‘A’ was a partner in a partnership firm. He died on 31st March 2019. The final amount due to him is ₹ 25,000 which is not paid immediately. It will be transferred to ______.
Dheena, Surya, and Jankai are partners sharing profits and losses in the ratio of 5:3:2. on 31.3.2018, Dheena retired. On the date of retirement, the books of the firm showed a reserve fund of ₹ 50,000. The pass journal entry to transfer the reserve fund.
Rosi, Rathi and Rani are partners of firm sharing profits and losses equally. Rathi retired from the partnership on 1.1.2018. On that date, their balance sheet showed accumulated loss of ? 45,000 on the asset side of the balance sheet. Give the journal entry to distribute the accumulated loss.
Kannan, Rahim, and John are partners in a firm sharing profits and losses in the ratio of 5:3:2. The balance sheet as of 31st December 2017 was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Capital accounts: | Buildings | 90,000 | ||
| Kannan | 1,00,000 | 2,20,000 | Machinery | 60,000 |
| Rahim | 80,000 | Debtors | 30,000 | |
| John | 40,000 | Stock | 20,000 | |
| Workmen compensation funds | 30,000 | Cash at bank | 50,000 | |
| Creditors | 20,000 | Profit and loss A/c (loss) | 20,000 | |
| 2,70,000 | 2,70,000 |
John retires on 1st January 2018, subject to the following conditions :
- To appreciate building by 10%
- Stock to be depreciated by 5%
- To provide ₹ 1,000 for bad debts
- An unrecorded liability of ₹ 8,000 has been noticed.
- The retiring partner shall be paid immediately.
Prepare revaluation account, partner’s capital account, and the balance sheet of the firm after retirement.
