Question 1:
PRACTICAL PROBLEM
Sanil, Nitish, Sapna were partners in a firm sharing profits and losses in the proportion of 1/2, 1/3 and 1/6 respectively. Their Balance Sheet as on 31st March, 2012 was as follows:
Balance Sheet as on 31-03-2012
Sapna decided to retire on 1st April 2012 on the following terms:-
1) Goodwill of the firm will be valued at Rs 30,000/-
2) Furniture was taken over by Sanil for Rs 4,700/-
3) Make a provision for unpaid expenses Rs 1,700/-
4) Out of the amount due to Sapna Rs 7,500/- to be paid by cheque and the remaining amount to be transferred to her loan account.
Note: As per the book the Total of Balance Sheet is Rs 2,12,200 but as per our solution it should be Rs 2,07,500.
