Question

Naik, Vinay and Vibhuti were partners in a firm sharing profits and losses in the ratio of $4:2:3$. On 31$^{\text{st}}$ March, 2025, Naik retired. General Reserve = ₹ 45,000. Revaluation resulted in a loss of ₹ 18,000. Goodwill of the firm was valued at ₹ 1,80,000 and adjusted without opening goodwill account. Amount payable to Naik was transferred to his loan account. Pass necessary journal entries.

Hint:

Retirement entries order:

• Reserves → old ratio
• Revaluation → old ratio
• Goodwill → gaining ratio
• Final balance → Loan A/c

Answer 1