Retirement of partner illustration 4

Take the balance after adjusting, reserves, goodwill revaluation loss in the accounts of remaining partners you will get 35,000 for K 28000 forM and 21000 for N. M is paid off to make it proportionate i.e. 28000 is for 4/12th ratio (present from capital accounts), now adjust it to 2/10th ratio (Profit sharing ratio). Sathya sir has solved this illustration (last illustration in the module Retirement of partner). See that it will help you understand better

Sudha Reddy

CA Final

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13-May-20 08:37