A, B and C were partners in a businessharing profits equally, C retires on 1.1.2012, when the Balance Sheet stood as follows:BALANCE SHEETas at 1.1.2012LiabilitiesAssets$Bills Payable2,000Cash at Bank3,750Creditors350Bills Receivable2,500General Reserve7,500Debtors6,300Profit and Loss A/c3,000Stock in Trade700Capitals -Furniture & Fixtures4,000Building & LandDeferred Revenue ExpenditureA7,50016,350B8,2503,0008,000(Advertisement)36,60036,600The goodwill of the firm is valued at $ 11,250. Amount payable to C is transferred tohis loan account which will be paid in three equal annual installment together with interest@ 10% p.a. Show the Retiring Partner's Capital Account and his Loan Account till it is paidoff. Books of accounts are closed on 31st December every year.

C is retiring partner. All the money payable to c is credited in his account and money payable by c…

A, B and C were partners in a busines sharing profits equally, C retires on 1.1.2012, when the Balance Sheet stood as follows: BALANCE SHEET as at 1.1.2012 Liabilities $ Assets Bills Payable 2,000 Cash at Bank 3,750 Creditors 350 Bills Receivable 2,500 General Reserve 7,500 Debtors 6,300 Profit and Loss A/c 3,000 Stock in Trade 700 Capitals - Furniture & Fixtures 4,000 16,350 Building & Land Deferred Revenue Expenditure A 7,500 8,250 3,000 8,000 (Advertisement) 36,600 36,600

A, B and C were partners in a busines sharing profits equally, C retires on 1.1.2012, when the Balance Sheet stood as follows: BALANCE SHEET as at 1.1.2012 Liabilities $ Assets Bills Payable 2,000 Cash at Bank 3,750 Creditors 350 Bills Receivable 2,500 General Reserve 7,500 Debtors 6,300 Profit and Loss A/c 3,000 Stock in Trade 700 Capitals - Furniture & Fixtures 4,000 16,350 Building & Land Deferred Revenue Expenditure A 7,500 8,250 3,000 8,000 (Advertisement) 36,600 36,600

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 5CE

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