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Adjustment in Partner's Capital A/c (Retirement)

In case of re...

Question

In case of retirement of a partner, the partner's loan account would be shown ________.

A

in his capital account

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B

in his wife's loan account

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C

in his loan account

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D

in the total amount due to him

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Solution

The correct option is D in the total amount due to him
At the time of retirement of a partners, all dues pertaining to him to be clubbed together. Hence any loan is due, this has to be shown in the total amount due to him.

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Q. After the death of a partner, the amount due to the deceased partner by his capital account is transferred to his account.

Amount due to a deceased partner shown by his capital account is transferred to his ___

Q. Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March,2018 at which date their Balance Sheet stood as:


Liabilities		₹	Assets	₹
Capital A/cs:			Building	45,000
Bale	50,000		Machinery	15,000
Yale	40,000	90,000	Furniture	12,000
General Reserve		8,000	Debtors	8,000
Bale's Loan A/c		3,000	Stock	24,000
Creditors		14,000	Bank	11,000

		1,15,000		1,15,000

(a) The assets realised were:
Stock ₹ 22,000; Debtors ₹ 7,500; Machinery ₹ 16,000; Building ₹ 35,000.
(b) Yale took over the Furniture at ₹ 9,000.
(c) Bale agreed to accept ₹ 2,500 in full settlement of his Loan Account .
(d) Dissolution Expenses amounted to ₹ 2,500.
Prepare the:
(i) Realisation Account; (ii) Capital Accounts of Partners;
(iii) Bale's Loan Account; (iv) Bank Account.

Q. When is a claim of retiring partner transferred to Loan account which accounts it is credited to?

Q. When remaining partners can’t pay the entire amount immediately to outgoing partner, money in his capital account is transferred to his account.

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