N, S and G were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2016 their Balance Sheet was as under: G retired on the above ate and it was agreed that: (a) Debtors of ₹ 6,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained. (b) Patents will be completely written off and stock, machinery and building will be depreciated by 5%. (c) An unrecorded creditor of ₹ 30,000 will be taken into account. (d) N and S will share the future profits in 2 : 3 ratio. (e) Goodwill of the firm on G’s retirement was valued at ₹ 90,000. Pass necessary journal entries for the above transactions in the books of the firm on G’s retirement.

N, S and G were partners in a firm sharing profits and losses in the r

1.	N, S and G were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2016 their Balance Sheet was as under: G retired on the above ate and it was agreed that: (a) Debtors of ₹ 6,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained. (b) Patents will be completely written off and stock, machinery and building will be depreciated by 5%. (c) An unrecorded creditor of ₹ 30,000 will be taken into account. (d) N and S will share the future profits in 2 : 3 ratio. (e) Goodwill of the firm on G’s retirement was valued at ₹ 90,000. Pass necessary journal entries for the above transactions in the books of the firm on G’s retirement.
Answer» Notes:WN1: CALCULATION of G's Share of Goodwill(to be borne by gaining partners in gaining ratio)WN1: Calculation of Gaining Ratio Gaining Ratio = New Ratio - Old RatioWN2: Calculation of Excess/Deficit PROVISION for Doubtful DebtsWN3: Calculation of G's Loan BALANCE Amount due to G = Opening Capital + Credits - Debits

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