The balance sheet of Block, white and red sharing profits and losses in the ratio 5:3:2 on 31st December 2014 is given below
                                                 Balance Sheet
                                            as at 31st December 2014

Red retire from 1st May 2015 and Black and White decide to share future profits and losses in the ratio of 3:5.Red has withdrawn Rs.20.000 during 2015.It was agreed that
(i) Goodwill be valued at 2 1/2 years' purchase of average of four completed years' profits which were:2011 Rs.4,04,000; 2012 Rs.56,000; 2013 Rs.64,000
(ii) Red's share of profits from the closure of last accounting year till date of retirement be calculated on the basis of the average of three completed years' profits before retirement.
(iii) Patents undervalued by Rs.28000, machinery overvalued by Rs.27,200, all debtors are good.Rs.2,000 provided in sundry creditors is not likely to arise.Unaccounted accrued income of Rs.4,400 to be provided for.A debtor whose dues of Rs.800 were written-off as bad debts, paid 50% in full settlement.A Claim of Rs.2,000 on account of workmen's compensation to be provided for.
(iv) Investments be sold for Rs.16,400.Red was to be paid through cash brought in by Black and White in such a way as to make their capitals proportionate to their new profit sharing ratio of 3:5 assuming that a minimum cash and bank balance of Rs.18,000 was to be maintained.
Prepare revaluation account, capital accounts of partners and the balance sheet of new firm.

If the retiring partners is not paid the full amount due to him immediately on retirement, how should his capital account be shown in subsequent balance sheet?

How can the amount due to the retiring partner be settled?

Arjun, Bhim and Nakul are partners sharing profits and Losses in the ratio of 14:5:6 respectively. Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill of the firm is valued at 2 years purchase of super profits based on average profits of last 3 years. The profits for the last 3 years are Rs.50,000, Rs.55,000 and Rs.60,000 respectively. The normal profits for the similar firm are Rs.30,000. Goodwill already in the books of the firm at Rs.75,000. The profit for the first year after Bhim's retirement was Rs.1,00,000. Give the necessary Journal Entries to adjust Goodwill and distribute profits showing your workings clearly.

Ram, Laxman and Bharat are partners sharing profits in the ratio of 3:2:1. Goodwill is appearing in the books at a value of Rs.1,80,000. Laxman retires and at the time of his retirement, goodwill is valued at Rs.2,52,000. Ram and Bharat decided to share future profits in the ratio of 2:1. The profits for the first year after Laxman's retirement amount to Rs.1,20,000. Give the necessary Journal Entries to record goodwill and to distribute the profits. Show your calculations clearly.

P,Q and R were partners in a firm sharing profits in the ratio of 7:2:1. On 1st April, 2013 their Balance Sheet was as follows:               

On the above date Q retired.
The following were agreed:
(i) Goodwill of the firm was valued at Rs.12,00,000.
(ii) Land was to be appreciated by 30% and Building was to be depreciated by Rs.3,00,000.
(iii) Value of furniture was to be reduced by Rs.60,000.
(iv) The liabilities for Workmen's Compensation Fund was determined at Rs.1,40,000.
(v) Amount payable to Q was transferred to his loan account.
(vi) Capitals of p and R were to be adjusted in their new profit sharing ratio and for this purpose current accounts of the partners will be opened.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm. 

Sandeep, Praveen and Tara are partners sharing profits in the ratio of 3:2:1. On 1st April, 2012  Sandeep gave a notice to retire from the firm. Praveen and Tara after all adjustments showed a balance of Rs.64,000 and Rs.1,00,000 respectively. The total amount to be paid to Sandeep was Rs.1,23,000. This amount was to be paid by Praveen and Tara in such a way Pass necessary Journal entires for the above transations in the books of the firm. Show your working clearly.

P, Q and R were partners in a firm sharing profits in the ratio of 5:3:2.n 31st March, 2015, their balance sheet was as under

                          Balance Sheet
                    as at 31st March, 2015

R died on 1st October, 2015.t was agreed between his executors and the remaining partners that
(i) Good will be valued at 2years' purchase of the average profits of the previous five years, which were: 2011=Rs.50,000, 2012=Rs.1,30,000, 2013=Rs.1,20,000, 2014=Rs.1,50,000 and 2015=Rs.2,00,000.
(ii)Patents be valued at Rs.80,000, investment at 2,80,000, furniture at Rs.3,00,000.
(iii)Profit for the year 2015-16 be taken as having accrued at the same rate as the previous year.
(iv)Interest on capital be provided at 10% per annum.
(v)A sum of Rs.77,500 was paid to his executors immediately.
Prepare R's capital account and his executor's account at the time of his death.

M, R and C were partners sharing profits and losses in the ratio of 5:3:2.Their balance sheet as at 31st March, 2015 was as follows

                             Balance Sheet
                      as at 31st March,2015

C died on the 30th September, 2015.Following adjustments are to be made.
(i)Goodwill is valued on the basis of 3years' purchase of average profits of last five completed years, however, it was decided not to show goodwill account in the new firm.Profits for the last five years were as under

(ii)Deceased partner is to be given share of profits upto the date of death.For this purpose, profit of previous year can be considered as profits for the year can be paid to deceased partner for the period he worked in the business.
(iii)Salary of Rs.3,000 per month is to be paid to deceased partner for the period he worked in the business.
(iv)Debtors amounting to Rs.2,000 were proved bad, so they should be written-off
(v)Provision on debtors of 10% is to be created.
(vi)Raise provision for discount on debtors of 20%
(vii)Furniture and fixtures is to be decreased by 10%
Prepare revaluation account and C's capital account to be rendered to her executors.

The loss or gain an account of revaluation at the time of retirement of a partner is shared by:

Amount due to out going partner is shown in the balance sheet as his:

An account operated to ascertain the loss or gain at the death of a partner is called:

Partners equity is effected due to:

The accounting procedure at the retirement of partner is valued:

In case of retirement of a partner full good will is credited to the accounts of:

The partnership may come to an end due to the: