Q.No.42 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 42 Chapter 6 of +2-A

42. Rakesh retired from the firm. The amount due to him was determined at
90,000. It was decided to pay the due amount as follows:
On the date of retirement − 30,000
Balance in three yearly instalments − The first two instalments being of 26,000, including interest; and Balance amount as the last instalment.
Interest was payable @ 10 p.a. Prepare retiring Partners' Loan Account.

The solution of Question 42 Chapter 6 of +2-A: -

	Y’s Loan Account
Date	Particular	Amount	Date	Particular	Amount
Year I	To Bank A/c	26,000	Year I	By Y’s Capital A/c	60,000
	(20,000 + 6,000)
	To Balance C/d	40,000		By Interest on Loan A/c	6,000
		66,000		60,000 × 10/100	66,000
Year II	To Bank A/c	26,000	Year II	By Balance B/d	40,000
	(22,000 + 4,000)			By Interest on Loan A/c	4,000
	To Balance C/d	18,000		40,000 × 10/100
		44,000			44,000
Year III	To Bank A/c	19,800	Year III	By Balance B/d	18,000
	(18,000 + 1,800)			By Interest on Loan A/c	1,800
				18,000 × 10/100
		19,800			19,800

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

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