Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ashok, Bhaskar and Chaman were in partnership sharing profits and losses equally. Bhaskar retired from the firm. After all adjustments, his Capital Account showed a credit balance of ₹3,00,000 as on 1st April, 2020. The balance due to Bhaskar is to be paid in three equal annual instalments together with interest @ 10% p.a. on the outstanding balance. Prepare Bhaskar’s Loan Account until he is paid the full amount due to him. The firm closes its books on 31st March every year.
BHASKAR’S LOAN ACCOUNT
| Date | ₹ | Date | ₹ |
|---|---|---|---|
| 2020-21 | |||
| 2021 Mar 31 To Bank A/c (1,00,000 + 30,000) | 1,30,000 | 2020 Apr 1 By Bhaskar’s Capital A/c | 3,00,000 |
| 2021 Mar 31 To Balance c/d | 2,00,000 | 2021 Mar 31 By Interest on Loan A/c (3,00,000 × 10%) | 30,000 |
| Total | 3,30,000 | Total | 3,30,000 |
| 2021-22 | |||
| 2022 Mar 31 To Bank A/c (1,00,000 + 20,000) | 1,20,000 | 2021 Apr 1 By Balance b/d | 2,00,000 |
| 2022 Mar 31 To Balance c/d | 1,00,000 | 2022 Mar 31 By Interest on Loan A/c (2,00,000 × 10%) | 20,000 |
| Total | 2,20,000 | Total | 2,20,000 |
| 2022-23 | |||
| 2023 Mar 31 To Bank A/c (1,00,000 + 10,000) | 1,10,000 | 2022 Apr 1 By Balance b/d | 1,00,000 |
| 2023 Mar 31 By Interest on Loan A/c (1,00,000 × 10%) | 10,000 | ||
| Total | 1,10,000 | Total | 1,10,000 |
Working Note: Instalment of principal = ₹3,00,000 / 3 = ₹1,00,000 per year, plus interest @10% on the opening balance of each year.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 5 Q.38 - Retirement of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Retirement of a Partner.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Chapter 5 Q.38 - Retirement of a Partner" instantly.