Question
Question Thursday enterprise is a partnership firm in which Baqir, Basit and Bazid are partners sharing profits or losses equally. Each partner's capital was as
Question
Thursday enterprise is a partnership firm in which Baqir, Basit and Bazid are partners sharing profits or losses equally.
Each partner's capital was as follows on 31 December 2019:
BaqirRs.80,000
BasitRs.60,000
BazidRs.75,000
Bazid decided to retire on 31 December 2019. He will be paid Rs. 50,000 in cash and will leave the remaining amount as a loan to the continuing partnership of Baqir and Basit.
Goodwill of the partnership was agreed to be Rs.60,000 on 31 December 2019.
After Bazid leave, Baqir and Basit will share profit equally.
According to the accounting policy of partnership goodwill is not reported in financial statements.
Required:
Prepare capital account of each partner on 31 December 2019.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started