Moin, Nasir and Qasim are partners having capitals of Rs. 84,000, 64,000 and 48,000 respectively They share profit and losses in the ratio of 4:2:1 respectively. Qasim agrees to retire from the partnership Required: Give the necessary entries in the general journal of the firm recording the retirement of Qasim under each of the following assumptions separately. Assumption-A: Qasim is paid Rs. 68,000 from the partnership in full settlement. Assumption-B: Qasim is paid Rs. 40,000 from the partnership in full settlement. (Note: use Bonus and Goodwill method above both the assumption)
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Moin, Nasir and Qasim are partners having capitals of Rs. 84,000, 64,000 and
48,000 respectively They share
Qasim agrees to retire from the
Required:
Give the necessary entries in the general journal of the firm recording the retirement of
Qasim under each of the following assumptions separately.
Assumption-A: Qasim is paid Rs. 68,000 from the partnership in full settlement.
Assumption-B: Qasim is paid Rs. 40,000 from the partnership in full settlement.
(Note: use Bonus and
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