P, Q and R are partners in a firm. Q retires. On his date of retirement, Rs.60,000 becomes due to him. P and R promise to pay him in instalments every year at the end of the year. Prepare Q’s Loan A/c. in the following cases:
a) When the payment is made four yearly instalments plus interest @12% p.a. on the unpaid balance.
b) When they agree to pay three-yearly instalments of Rs. 20,000 including interest @ 12% p.a. on the outstanding balance during the first three years and the balance including interest in the fourth year.