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X, Y and Z we...

Question

X, Y and Z were in partnership sharing profits and losses equally. 'Y' retires from the firm. After adjustments, his Capital Account shows a credit balance of ₹ 3,00,000 as on 1st April, 2016. Balance due to 'Y' is to be paid in three equal annual instalments along with interest @ 10% p.a. Prepare Y's Loan Account until he is paid the amount due to him. The firm closes its books on 31st March every year.

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Solution

Dr.

Y’s Loan A/c

Cr.

Date

Particulars

Amount

(₹)

Date

Particulars

Amount

(₹)

2017

2016

March 31
To Bank A/c (1,00,000 + 30,000)
1,30,000
April 01 By Y’s Capital A/c
3,00,000

March 31
To balance c/d
2,00,000
2017

March 31 By Interest on Loan A/c
30,000

(3,00,000 × 10/100)

3,30,000

3,30,000

2018

2017

March 31
To Bank A/c (1,00,000 + 20,000)
1,20,000
April 01 By balance b/d
2,00,000

March 31
To balance c/d
1,00,000
2018

March 31 By Interest on Loan A/c
20,000

(2,00,000 × 10/100)

2,20,000

2,20,000

2019

2018

March 31
To Bank A/c (1,00,000 + 10,000)
1,10,000
April 01 By balance b/d
1,00,000

2019

March 31 By Interest on Loan A/c
10,000

(1,00,000 × 10/100)

1,10,000

1,10,000

Working Notes: Amount payable per Installment = ₹ (3,00,000/3) = ₹ 1,00,000

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Similar questions

A, B

and

C

are partners sharing profits and losses equally.

A

and

C

have granted loan to the firm on 1st October, 2016 of

R s . 1, 00, 000

and

R s .1, 50, 000

respectively. It is agreed that interest @

9 %

p.a. will be paid on loan. Books of account of the firm are closed on 31st March every year. Interest on loan is yet to be paid as on 31st March, 2017. You are required to pass Journal entries in the books of account of the firm and prepare ledger accounts of the two partners.

Q. X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2019 was:


Liabilities		Amount (₹)	Assets	Amount (₹)
Creditors		49,000	Cash	8,000
Reserve		18,500	Debtors	19,000
Capital A/cs: X	82,000		Stock	42,000
Y	60,000		Building	2,07,000
Z	75,500	2,17,500	Patents	9,000
		2,85,000		2,85,000

Y retired on 1st April, 2019 on the following terms:
(a) Goodwill of the firm was valued at ₹ 70,000 and was not to appear in the books.
(b) Bad Debts amounted to ₹ 2,000 were to be written off.
(c) Patents were considered as valueless.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of X and Z after Y's retirement.

A, B and C are partners in a firm. A retires on 1st April, 2012. On the date of retirement, Rs 80,000 is due to him in all. It is agreed to pay him this amount in instalments every year at the end of the year. Prepare A's Loan A/c in the following cases :

(i) Four yearly instalments plus interest @ 10% p.a.

(ii) Three instalments of Rs 25,000 which already include interest @ 10% p.a. on the outstanding balance and the balance including interest in the fourth year.

Books are closed on 31st March every year.

Q. X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2018 was:



Liabilities		₹	Assets	₹
Creditors		49,000	Cash	8,000
Reserve		18,500	Debtors	19,000
Capital A/cs: X	82,000		Stock	42,000
Y	60,000		Building	2,07,000
Z	75,500	2,17,500	Patents	9,000
		2,85,000		2,85,000

Y retired on 1st April, 2018 on the following terms:
(a) Goodwill of the firm was valued at ₹ 70,000 and was not to appear in the books.
(b) Bad Debts amounted to ₹ 2,000 were to be written off.
(c) Patents were considered as valueless.
Prepare Revaluation Account , Partners' Capital Accounts and the Balance Sheet of X and Z after Y's retirement.

Banwari, Girdhari and Murari are partners in a firm sharing profits and losses in the ratio of

4 : 5 : 6

. On 31st March, 2014, Girdhari retired. On that date the capitals of Banwari, Girdhari and Murari before the necessary adjustments stood at

R s . 2, 00, 000, R s . 1, 00, 000

and

R s . 50, 000

respectively. On Girdhari's retirement, goodwill of the firm was valued at

R s . 1, 14, 000

. Revaluation of assets and re-assessment of liabilities resulted in a profit of

R s . 6, 000

. General Reserve stood in the books of the firm at

R s . 30, 000

The amount payable to Girdhari was transferred to his loan account. Banwari and Murari agreed to pay Girdhari two yearly instalments of

R s . 75, 000

each including interest

@ 10 %

p.a. on the outstanding balance during the first two years and the balance including interest in the third year. The firm closes its books on 31st March every year.

Prepare Girdhari's loan account till it is finally paid showing the working notes clearly.

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Dr.	Y’s Loan A/c						Cr.
Date		Particulars	Amount (₹)	Date	Particulars	Amount (₹)
2017				2016
March 31		To Bank A/c (1,00,000 + 30,000)	1,30,000	April 01	By Y’s Capital A/c	3,00,000
March 31		To balance c/d	2,00,000	2017
				March 31	By Interest on Loan A/c	30,000
					(3,00,000 × 10/100)
			3,30,000			3,30,000
2018				2017
March 31		To Bank A/c (1,00,000 + 20,000)	1,20,000	April 01	By balance b/d	2,00,000
March 31		To balance c/d	1,00,000	2018
				March 31	By Interest on Loan A/c	20,000
					(2,00,000 × 10/100)
			2,20,000			2,20,000
2019				2018
March 31		To Bank A/c (1,00,000 + 10,000)	1,10,000	April 01	By balance b/d	1,00,000
				2019
				March 31	By Interest on Loan A/c	10,000
					(1,00,000 × 10/100)
			1,10,000			1,10,000