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Business, 20.06.2020 22:57 VanBrocklin4706
Z retired on the above date on the following terms: a) Goodwill of the firm was valued at Rs. 30,000 b) Value of patents was to be reduced by 20% and that of plant & machinery to 90%. c) Provision for doubtful debts was to be raised to 6 %. d) Z took over the investments at a value of Rs.17,600. e) Liability for workmen’s compensation to the extent of Rs. 375 is to be created. f) Trade creditors to the extent of 2.5 % are not likely to claim their dues. g) Amount due to Z is to be settled on the following basis: 50 % on retirement, 50 % of the balance to be paid in 2 equal half yearly installments carrying interest at 5 % p. a. and the balance by a Bill of Exchange (without interest) at 3 months. The entire capital of the firm as newly constituted is fixed at Rs.100, 000 and the partners’ capital accounts are to be adjusted in the profit sharing ratio. Any excess is to be transferred to current account and any deficit is to be brought in cash
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Z retired on the above date on the following terms: a) Goodwill of the firm was valued at Rs. 30,000...
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