State the order of payment of the following, in case of dissolution of partnership firm.
i. to each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner’ loan),
ii. to each partner proportionately what is due to him on account of capital, and
iii. for the debts of the firm to the third parties,

Balance Sheet of J and K who share profits in the ratio of 3 : 2 is as follows: M joins the firm 1st April, 2019 for half share in the future profis. He is to pay RS.1,00,000 for goodwill and RS.3,00,000 for capital. Draft the Journal entries and prepare Balance Sheet in each of the following cases: (a) If M acpuires his share of profit from the firm in the profits-sharing rartios of the partners. (b) If M acquires his share of profit the firm in equal proportions from the original parters. (c) If M acquires his share of profit in the ratio of 3 : 1 from the original partners, ascertain the future profit-sharing ratio of the partners in each case.

The Balance Sheet of Mohit, Neeraj and Sohan who are partners in a firm sharing profits according to their capitals as on March 31, 2017 was as under: On that date, Neeraj decided to retire from the firm and was paid for his share in the firm subject to the following: 1. Buildings to be appreciated by 20%. 2. Provision for Bad debts to be increased to 15% on Debtors. 3. Machinery to be depreciated by 20%. 4. Goodwill of the firm is valued at Rs. 72,000 and the retiring partner’s share is adjusted through the capital accounts of remaining partners. 5. The capital of the new firm be fixed at Rs. 1,20,000. Prepare Revaluation Account, Capital Accounts of the partners, and the Balance Sheet after retirement of B.