Question 42 Chapter 6 of +2-A
Table of Contents
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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