Preparation of Transfer of Amount to P's Loan Account after Retirement:

After the retirement of P, it is agreed that q and p will share the profits and losses. The amount due to P is to be transferred to P's loan account. The preparation of transfer of amount to P's loan account after retirement involves the following steps:

Step 1: Calculation of Amount Due to P:
The first step is to calculate the amount due to P. This can be done by subtracting P's capital account balance from the total assets of the business. The resulting amount is the amount due to P.

Step 2: Transfer of Amount to P's Loan Account:
Once the amount due to P is calculated, the next step is to transfer this amount to P's loan account. This will reduce P's loan balance and increase P's capital account balance.

Step 3: Adjustment of Profit and Losses:
After the transfer of the amount to P's loan account, the profits and losses of the business are to be adjusted between q and p. The profits and losses are shared in the agreed ratio between the two partners.

Step 4: Preparation of Balance Sheet:
Finally, a balance sheet is prepared to reflect the changes in the capital accounts of the partners. The balance sheet shows the assets, liabilities, and capital of the business.

In conclusion, the preparation of transfer of amount to P's loan account after retirement involves calculating the amount due to P, transferring the amount to P's loan account, adjusting the profits and losses between q and p, and preparing a balance sheet to reflect the changes in the capital accounts of the partners.