journal entry will appear as follows: Retiring Partner's Capital Alc Dr. To Bank A/C Sometimes the retiring partner agrees to retain some portion of his claim in the partnership as loan. The journal entry will be as follows: Retiring Partner's Capital Alc Dr. 164 To Retiring Partners' Loan Alc To Bank A/C. illustration 9 Fairbrother, Greatbatch and Kristen were partners sharing profit and losses at the 2:2:1. Kristen wants to retire on 31-12-2005. Given below the Balance Sheet of the partnership as well as other information: Balance Sheet as on 31-12-2005 Liabilities Rs. Assets Rs. Capital A/cs. Sundry Fixed Assets 1,50,000 Fairbrother 1,20,000 Stock 50,000 Greatbatch 80,000 Debtors 50,000 Kristen 60,000 Bills Receivable 20,000 Reserve 10,000 Bank 50,000 Sundry creditors 50,000 3.20.000 3,20,000 Fairbrother and Greatbatch agree to share profits and losses at the ratio of 3:2 in future Value of goodwill is taken to be Rs. 50,000. Sundry Fixed Assets are revalued upward by Rs. 30,000 and stock by Rs. 10,000. Bills Receivable dishonoured Rs. 5,000 on 31-12-2005 but not recorded in the books. Dishonour of bill was due to insolvency of the customer. Fairbrother and Greatbatch agree to bring sufficient cash to discharge claim of Kristen and to make their capital proportionate. Also they wanted to maintain Rs. 75,000 bank balance for working capital. However they did not want to show goodwill in the books of accounts. Pass necessary journal entries and draft the Balance Sheet of Mis Fairbrother and Greatbatch