Question

X, Y and Z were partners in a firm sharing profit and losses in the ratio of 5 : 3 : 2. On 31.3.2022 X retired from the firm. On X's retirement the firm had a balance of ₹ 90,000 in the General Reserve Account. The revaluation of assets and reassessment of liabilities resulted in a loss of ₹ 70,000. Pass necessary journal entries for the above transactions on X's retirement.

Answer 1

In the books of X, Y and Z Journal Entries
Date	Particular	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
1.	General Reserve A/c   ...Dr.		90,000	-
	To X's capital A/c		-	45,000
	To Y's capital A/c		-	27,000
	To Z's capital A/c		-	18,000
	(Being general reserve distributed.)
2.	X's capital A/c   ...Dr.		35,000	-
	Y's capital A/c   ...Dr.		21,000	-
	Z's capital A/c   ...Dr.		14,000	-
	To Revaluation A/c		-	70,000
	(Being loss on revaluation transferred to partners' capital A/c)