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Q.

Shailja, Sonam and Arpita are the partners sharing profit and loss in the ratio of 2/5, 5/10 and 1/10. Balance sheet of the firm on 31.3.2025 was as under:

Balance Sheet

LiabilitiesAmt.(₹)AssetsAmt.(₹)
Creditors90,000Goodwill30,000
General reserve70,000Building2,82,000
Capital Accounts: Shailja 2,00,000; Sonam 1,00,000; Arpita 90,0003,90,000Machinery1,45,000
Current Accounts: Shailja 26,000; Sonam 14,00040,000Investments33,000
Bad debt reserve10,000Stock20,000
Debtors50,000
Loan to Arpita30,000
Current Account: Arpita10,000
6,00,0006,00,000

Arpita retired on 1.4.2025 as a partner. At the time of her retirement, partners decided that:

(1) ₹ 4,000 is outstanding for rent payable.

(2) Interest on investment is receivable ₹ 2,500.

(3) Investments to be sold for ₹ 35,000.

(4) Goodwill of the firm is valued at ₹ 2,00,000.

(5) Shailja and Sonam will share future profit in the ratio of 1:1.

Prepare necessary accounts and balance sheet after retirement.

Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2026Subjective· 8mImportance★★★★★
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Arpita is paid off through a loan of 74,050; Shailja alone compensates her goodwill of 20,000; balance sheet totals 5,24,500.

Old ratio Shailja : Sonam : Arpita = 2/5 : 5/10 : 1/10 = 4 : 5 : 1. New ratio Shailja : Sonam = 1 : 1.

Gaining ratio = New - Old: Shailja 5/10 - 4/10 = 1/10 (gain); Sonam 5/10 - 5/10 = 0. So Shailja alone gains Arpita's 1/10 share.

Existing goodwill 30,000 written off in old ratio: Shailja 12,000, Sonam 15,000, Arpita 3,000.

Arpita's share of firm's goodwill = 2,00,000 x 1/10 = 20,000, borne by Shailja (the only gainer).

Revaluation Account:

Particulars (Dr)AmountParticulars (Cr)Amount
To Outstanding rent4,000By Interest on investment receivable2,500
To Profit t/f: Shailja 200; Sonam 250; Arpita 50500By Profit on sale of investment (35,000 - 33,000)2,000
Total4,500Total4,500

Partners' Current Accounts (reserves, revaluation, goodwill routed here):

ParticularsShailjaSonamArpitaParticularsShailjaSonamArpita
To Balance b/d--10,000By Balance b/d26,00014,000-
To Goodwill written off12,00015,0003,000By General reserve28,00035,0007,000
To Arpita (goodwill)20,000--By Revaluation profit20025050
To Balance c/d22,20034,250-By Shailja (goodwill)--20,000
To Arpita's capital (transfer)--14,050
Total54,25049,25027,050Total54,25049,25027,050

Arpita's Capital Account:

Particulars (Dr)AmountParticulars (Cr)Amount
To Loan to Arpita (set off)30,000By Balance b/d90,000
To Arpita's Loan A/c (amount due)74,050By Current A/c (transfer)14,050
Total1,04,050Total1,04,050
…

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