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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ram, Manohar and Joshi were partners in a firm sharing profits equally. Manohar retired, and the amount due to him (Capital plus his share of goodwill) was ₹1,80,000. There was an unrecorded item of furniture worth ₹9,000. Half of this furniture (₹4,500) was taken over by Manohar at a discount of 10% in part satisfaction of his claim, and the firm also settled an unrecorded liability of ₹9,000. Manohar’s share of the resulting loss on revaluation was adjusted against his claim, and the balance was discharged by a bank draft. Pass the necessary Journal entries.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Manohar’s Capital A/c Dr. | 4,050 | |||
| To Revaluation A/c | 4,050 | |||
| (Unrecorded furniture of ₹4,500 taken over by Manohar at a 10% discount, i.e. ₹4,050, adjusted against his claim) | ||||
| Revaluation A/c Dr. | 9,000 | |||
| To Unrecorded Liability A/c | 9,000 | |||
| (Unrecorded liability of ₹9,000 now recorded and settled) | ||||
| Manohar’s Capital A/c Dr. | 1,650 | |||
| To Revaluation A/c | 1,650 | |||
| (Manohar’s one-third share of the net loss on revaluation of ₹4,950 adjusted against his claim) | ||||
| Manohar’s Capital A/c Dr. | 1,74,300 | |||
| To Bank A/c | 1,74,300 | |||
| (Balance of Manohar’s claim discharged by bank draft: 1,80,000 – 4,050 – 1,650 = 1,74,300) |
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.40 - Retirement of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Retirement of a Partner.
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