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Neeraj Yadav- 92%...

Neeraj Yadav- 92%

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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.

Mohit, Neeraj and Sohan are partners in a firm sharing profits in the ratio of 2 : 1 : 1 . Neeraj retires and Mohit and Sohan decided that the capital of the new firm will be fixed at Rs. 1,20,000. The capital accounts of Mohit and Sohan show a credit balance of Rs. 82,000 and Rs. 41,000 respectively after making all the adjustments. Calculate the actual cash to be paid off or to be brought in by the continuing partners and pass the necessary journal entries.

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