Question No: 3 10 Marks a) P, Q and R are partners in a firm. They are sharing profits and losses in the ratio of 2:2:1 respectively. Q retires from the firm on 1st June 2019. After his retirement, his capital account shows a credit balance of RO 32,000 after the necessary adjustments made. Required: Explain the following options of settlement to the retiring partner with the relevant journal entries. i. When the amount due is paid off immediately (2 Marks) ii. When the amount due is not paid immediately (2 Marks) iii. When 20% is paid at once and balance in future (2 Marks) b) Explain the following methods for calculating profit up to the date of death of a partner with your own examples: i. Time basis method (2 Marks) ii. Turnover or Sales basis method (2 Marks)