Question

P, Q and R were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 31.3.2020 R retired from the firm. On R's retirement the balance sheet of the firm showed sundry debtors at t 3,75,000. It was decided to write off ₹ 5,000 as bad debts and create a provision of 20% on debtors for bad and doubtful debts. Pass necessary journal entries for the above transactions in the books of the firm on R's retirement.

Answer 1

Journal Entries
Date	Particular	L.F.	Dr. (₹)	Cr. (₹)
1.	Revaluation A/c   ...Dr.		14,250	-
	To Debtors A/c		-	5,000
	To Provision for bad debts A/c		-	9,250
	(Being writer off bad debts and P.B.D. recorded.)
2.	P's Capital A/c   ...Dr.		5,700	-
	Q's Capital A/c   ...Dr.		4,275	-
	R's Capital A/c   ...Dr.		4,275	-
	To Revaluation A/c		-	14,250
	(Being loss on revaluation transferred to Partner's Capital A/c)