N, S and G were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2016 their Balance Sheet was as under:

( Rs.)
( Rs.)
General Reserve90,000Debtors – 1,35,000
Capital A/c :Less: Provision – (15,000)1,20,000
 N – 2,25,000Stock1,50,000
 S 3,75,000Machinery4,50,000
 G 4,50,00010,50,000Patents90,000
  Profit and Loss Account75,000
 13,05,000 13,05,000

G retired on the above date and it was agreed that:
(a) Debtors of Rs. 6,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.
(b) Patents will be completely written off and stock, machinery and building will be depreciated by 5%. 
(c) An unrecorded creditor of Rs. 30,000 will be taken into account. 
(d) N and S will share the future profits in 2 : 3 ratio.
(e) Goodwill of the firm on G’s retirement was valued at Rs. 90,000.
Pass necessary Journal entries for the above transactions in the books of the firm on G’s retirement.


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