Inder, Jonny and Kapil were partners in a firm sharing profits and losses in the ratio of 9:3:4. Their Balance Sheet as at 31st March, 2023 was as follows:
Balance Sheet of Inder, Jonny and Kapil as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | |
|---|---|---|---|---|
| Capitals: Inder Jonny Kapil General Reserve Creditors |
90,000 75,000 60,000 |
2,25,000 80,000 10,000 |
Fixed Assets Stock Debtors Cash |
1,20,000 60,000 1,00,000 35,000 |
| Total | 3,15,000 | Total | 3,15,000 | |
Kapil retired from the firm on 31st March, 2023 on the following terms:
(i) Bad Debts amounting to Rs. 5,000 were to be written off.
(ii) Fixed Assets were revalued at Rs. 96,000.
(iii) Stock was undervalued by Rs. 29,000.
(iv) Creditors were paid off.
(v) Goodwill of the firm was valued at at Rs. 80,000 and Kapil’s share of goodwill was to be adjusted in the accounts of Inder and Jonny.
(vi) New profit-sharing ratio between Inder and Jonny was 3:2.
Pass the necessary journal entries in the books of the firm on Kapil retirement.
Marks-6, CBSE: 2023-24/Zone-3/Set-1/Q-26
Answer :
