A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1. On
A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1. On 31.1.2018, B decides to retire and their Capital Accounts on that date areTheir Current Accounts on that date are
The partnership deed provided that in case of retirement, the retiring partner should be entitled to a share of the goodwill of the firm to be calculated on the average of the profits of last three years’ ending on 31.3.2018 which comes to ₹12,000 and that the payment of the total interest of the retiring partner shall be made by annual instalments of ₹10,000 each. The retiring partner will be entitled to interest also at 6% on the unpaid balance. The first instalment was paid on 31.3.2018.
Show B’s Loan Account until the whole payment due to him is made.
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