Sameer,Yasmin and Saloni were partners in a firm sharing profits and losses in the ratio of 4:3:3. On 31.3.2016, their Balance Sheet was as follows:
On the above date, Sameer retired and it was agreed that:
(i) Debtors of 4,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.
(ii) An unrecorded creditor of 20,000 will be recorded.
(iii) Patents will be completely written off and 5% depreciation will be charged on stock, machinery and building.
(iv) Yasmin and Saloni will share future profits in the ratio of 3:2
(v) Goodwill of the firm on Sameer's retirement was valued at ₹5,40,000.
Pass necessary journal entries for the above transactions in the books of the firm on Sameer’s retirement.