A,B and C are partners in a firm.A retires on 1 Apr 2008.On the date of retirement,rs.80000 is due to him in all.It is agreed to pay him this amount in installment every year on 31 March.Prepare A's loan A/c assuming that A is paid in 3 installments of rs.25000 each.Interest @ 10% p.a.On the outstanding balance of each year and the balance amount is paid in the fourth year.
Dear experts,kindly provide me with the answer of this question.

Anjana,
In case retiring partner is to be on some later date or in instalment, then whole of the amount so payable is transferred to his/her loan account by crediting the same in name of his/her Capital Account (Rs 80,000 in our case). The amount so paid at end of each period along with interest would continue reducing our liability till the full amount is paid to retiring partner. This has been explained in the study material provided at our website. We suggest you to go through the same using the link provided below and try preparing it on your own. In case you stuck up anywhere, do get back to us stating the specific area of your doubt. We would surely help you.

https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/partnership-accounts/reconstitutionretirement-death-of-a-partner/435_2431_5878#slide6_disposal-of-amount-due-to-retiring-partner

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