Q#7 Partnership Retirement ---------------------------------------- The following balance sheet of a partnership firm of Ali, Asad, and Nida Sharing profit and loss equally Cash Rs.80,000; merchandise inventory Rs.40,000; Fixed assets Rs. 100,000; Capital Ali Rs.50,000; Capital Asad Rs. 100,000 and Capital Nida Rs.70,000 January 1 Mr. Ali decided to retire from the firm and is paid Rs.60,000 due to goodwill. Required: Give entries in general journal to record retirement of Mr. Ali
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.
Q#7
The following balance sheet of a partnership firm of Ali, Asad, and Nida Sharing
Cash Rs.80,000; merchandise inventory Rs.40,000; Fixed assets Rs. 100,000; Capital Ali Rs.50,000; Capital Asad Rs. 100,000 and Capital Nida Rs.70,000
January 1 Mr. Ali decided to retire from the firm and is paid Rs.60,000 due to
Required: Give entries in general journal to record retirement of Mr. Ali
Step by step
Solved in 2 steps with 2 images
