On 31st March, 2023, Parul retired from active partnership and her share of the following was ascertained on the date of her retirement:



The amount due to Parul was kept with the firm as a loan, bearing interest @ 6% per annum. It was to be paid in two equal annual instalments along with interest @ 6 % per annum, the first instalment being paid on 31^st March, 2024.

You are required to prepare Parul’s Loan Account until the payment of the whole amount due to her is made.

OR

Piu and Nina are partners in a firm sharing profits and losses in the ratio of 3:1 respectively. Nina retires and her claim, including her capital and entitlements from the firm including her share of goodwill of the firm, is ₹ 60,000.

After this amount was determined, it was found that there was some unrecorded office equipment valued at ₹ 18,000 which had to be recorded.

Upon recording this office equipment, the revised amount due to Nina was determined and Piu settled it by giving Nina this office equipment and for the balance she drew a promissory note.

You are required to give the necessary journal entries to record the transactions on the date of Nina’s retirement.

Solution

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