Question 3C: Moin, Tariq, and Shazaib are partners of a firm who agreed to share the net income or loss in the ratio of 3:2:1 respectively. Their capital balances were Rs.300, 000,Rs. 270, 000 and Rs. 160, 000. They decided that Shazaib shall retire from the partnership business, as on October 31, 2017. The firm paid to the retiring partner Rs. 75, 000 for his whole interest of the business. Instructions: Give entries in the journal to record the retirement
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.
Question 3C: Moin, Tariq, and Shazaib are partners of a firm who agreed to share the net income or loss in the ratio of 3:2:1 respectively. Their capital balances were Rs.300, 000,Rs. 270, 000 and Rs. 160, 000. They decided that Shazaib shall retire from the partnership business, as on October 31, 2017. The firm paid to the retiring partner Rs. 75, 000 for his whole interest of the business.
Instructions: Give entries in the journal to record the retirement
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