P, Q and R were partners in a firm sharing profits and losses in the ratio of 4: 3: 3. On 31.3.2022 R retired from the firm. On R’s retirement the balance sheet of the firm showed sundry debtors at 3,75,000. It was decided to write off 5,000 as bad debts and create a provision of 2½% on debtors or bad and doubtful debts. 

Pass necessary journal entries for the above transactions in the books of the firm on R’s retirement.

Marks-2, CBSE:2021-22/Term-2/Zone-3/Set-1/Q-3

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