Retirement Of Partner

(a) Profit and Loss Adjustment Account

$%5Cbegin%7Barray%7D%7B%7Cl%7Cr%7Cr%7C%7D%20%5Chline%20%5Ctext%7BProfit%20and%20Loss%20Adjustment%20Account%7D%20%26%20%5Ctext%7BDr.%7D%20%26%20%5Ctext%7BCr.%7D%20%5C%5C%20%5Chline%20%5Ctext%7BTo%20Goodwill%20(Arun's%20share)%7D%20%26%20%E2%82%B9%5C%2C2000%20%26%20%5Ctext%7BBy%20Stock%20(Reduction)%7D~%E2%82%B9%5C%2C875%20%5C%5C%20%5Ctext%7BTo%20Stock%20(Reduction)%7D%20%26%20%E2%82%B9%5C%2C875%20%26%20%5Ctext%7BBy%20Furniture%20(Reduction)%7D~%E2%82%B9%5C%2C125%20%5C%5C%20%5Ctext%7BTo%20Machinery%20(Reduction)%7D%20%26%20%E2%82%B9%5C%2C5000%20%26%20%5Ctext%7BBy%20Machinery%20(Reduction)%7D~%E2%82%B9%5C%2C5000%20%5C%5C%20%5Ctext%7BTo%20Provision%20for%20R.D.D.%20(5%5C%25%20of%209000)%7D%20%26%20%E2%82%B9%5C%2C450%20%26%20%5Ctext%7BBy%20Creditors%20(Written%20off)%7D~%E2%82%B9%5C%2C100%20%5C%5C%20%5Chline%20%5Ctext%7BTotal%7D%20%26%20%E2%82%B9%5C%2C8325%20%26%20%E2%82%B9%5C%2C8000%20%5C%5C%20%5Chline%20%5Cend%7Barray%7D$

(b) Partners' Capital Account

$%5Cbegin%7Barray%7D%7B%7Cl%7Cr%7Cr%7C%7D%20%5Chline%20%5Ctext%7BPartners'%20Capital%20Account%7D%20%26%20%5Ctext%7BDr.%7D%20%26%20%5Ctext%7BCr.%7D%20%5C%5C%20%5Chline%20%5Ctext%7BTo%20Arun's%20Capital%20Account%7D%20%26%20%E2%82%B9%5C%2C16600%20%26%20%5Ctext%7BBy%20Balance%20b%2Fd%20(Aditya)%7D~%E2%82%B9%5C%2C21000%20%5C%5C%20%5Ctext%7BTo%20Arun's%20Loan%20Account%20(Remaining)%7D%20%26%20%E2%82%B9%5C%2C14600%20%26%20%5Ctext%7BBy%20Balance%20b%2Fd%20(Ajinkya)%7D~%E2%82%B9%5C%2C18500%20%5C%5C%20%5Chline%20%5Ctext%7BTotal%7D%20%26%20%E2%82%B9%5C%2C31200%20%26%20%E2%82%B9%5C%2C39500%20%5C%5C%20%5Chline%20%5Cend%7Barray%7D$

(c) New Balance Sheet of the Firm

$%5Cbegin%7Barray%7D%7B%7Cl%7Cr%7Cl%7Cr%7C%7D%20%5Chline%20%5Ctext%7BLiabilities%7D%20%26%20%5Ctext%7BAmount%20(%E2%82%B9)%7D%20%26%20%5Ctext%7BAssets%7D%20%26%20%5Ctext%7BAmount%20(%E2%82%B9)%7D%20%5C%5C%20%5Chline%20%5Ctext%7BCreditors%7D%20%26%2010%7B%2C%7D350%20%26%20%5Ctext%7BCash%7D%20%26%203%7B%2C%7D800%20%5C%5C%20%5Ctext%7BReserve%20Fund%7D%20%26%207%7B%2C%7D500%20%26%20%5Ctext%7BDebtors%7D%20%26%208%7B%2C%7D550%20%5C%5C%20%5Ctext%7BCapital%20Account%3A%7D%20%26%20%26%20%5Ctext%7BStock%7D%20%26%207%7B%2C%7D875%20%5C%5C%20%5Ctext%7BAditya%7D%20%26%2021%7B%2C%7D000%20%26%20%5Ctext%7BMachinery%7D%20%26%2045%7B%2C%7D000%20%5C%5C%20%5Ctext%7BAjinkya%7D%20%26%2018%7B%2C%7D500%20%26%20%5Ctext%7BFurniture%7D%20%26%202%7B%2C%7D375%20%5C%5C%20%5Ctext%7BArun's%20Loan%20Account%7D%20%26%2014%7B%2C%7D600%20%26%20%26%20%5C%5C%20%5Chline%20%5Ctext%7BTotal%3A%7D%20%26%2074%7B%2C%7D050%20%26%20%5Ctext%7BTotal%3A%7D%20%26%2074%7B%2C%7D050%20%5C%5C%20%5Chline%20%5Cend%7Barray%7D$

Final Answer: The Profit and Loss Adjustment Account reflects the adjustments made for goodwill, asset reductions, and provision for bad debts. The Partners' Capital Account includes the adjustments made for Arun's retirement, and the new Balance Sheet shows the final financial position of the firm post-retirement.

High-Yield Trend

Chapter Questions
1 MCQs

Official Solution

Retirement Of Partner

High-Yield Trend

Chapter Questions 1 MCQs

Official Solution

Chapter Questions
1 MCQs