Share

# On the Retirement of Hari from the Firm of 'Hari, Ram and Sharma' the Balance-sheet Showed a Debit Balance of Rs 12,000 in the Profit and Loss Account. for Calculating the Amount Payable to Hari This The Balance Will Be Transferred - CBSE (Arts) Class 12 - Accountancy

ConceptRetirement Or Death of a Partner - Adjustment of Accumulated Profits and Reserves

#### Question

On the retirement of Hari from the firm of 'Hari, Ram and Sharma' the balance-sheet showed a debit balance of Rs 12,000 in the profit and loss account. For calculating the amount payable to Hari this the balance will be transferred

(a) to the credit of the capital accounts of Hari, Ram and Sharma equally
(b) to the debit of the capital accounts of Hari, Ram and Sharma equally
(c) to the debit of the capital accounts of Ram and Sharma equally
(d) to the credit of the capital accounts of Ram and Sharma equally

#### Solution

to the debit of the capital accounts of Hari, Ram and Sharma equally

When a partner retires, the balance of accumulated profits and losses is transferred among all the partners in the old ratio. Here, debit balance of Rs 12,000 in the Profit and Loss Account will be debited (being a loss) to the capital accounts of Hari, Ram and Sharma equally.

Is there an error in this question or solution?

#### APPEARS IN

Solution On the Retirement of Hari from the Firm of 'Hari, Ram and Sharma' the Balance-sheet Showed a Debit Balance of Rs 12,000 in the Profit and Loss Account. for Calculating the Amount Payable to Hari This The Balance Will Be Transferred Concept: Retirement Or Death of a Partner - Adjustment of Accumulated Profits and Reserves.
S