Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Advertisement
Advertisement
Advertisement
Advertisement
Question 23 Chapter 6 of +2-Part-1
23. (Comprehensive) A , B and C are partners sharing profits in the ratio of 4 : 3 : 1. B retires selling his share of profit to A and C for Rs. 8,100. Rs. 3,600 being paid by A and Rs. 4,500 being paid by C. The profit for the year after B's retirement was Rs. 10,500. Distribute the above profit between A and C (in accordance with the above arrangement) showing how you arrive at the same and pass the necessary journal entry (if any) to record the above.
Calculation of new profit sharing ratio :
Total amount to be paid to B = Rs 8,100
| Amount payable by A | = | 3,600 | x | 4 | Of the total amount |
| 9 |
| Thus A’s gain | = | 3 | x | 4 |
| 8 | 9 | |||
| = | 12 | |||
| 72 |
| Amount payable by C | = | 4,500 | x | 5 | Of the total amount |
| 9 |
| Thus C’s gain | = | 3 | x | 5 |
| 8 | 9 | |||
| = | 15 | |||
| 72 |
| A’s new share | = | 4 | + | 12 |
| 8 | 72 | |||
| = | 48 | |||
| 72 |
| C’s new share | = | 1 | + | 15 |
| 8 | 72 | |||
| = | 24 | |||
| 72 |
| A’s share in profit | = | 10,500 | x | 2 |
| 3 | ||||
| = | Rs 7,000 |
| C’s share in profit | = | 10,500 | x | 1 |
| 3 | ||||
| = | Rs 3,500 |
Journal
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| a) | Profit & Loss Appropriation A/c | Dr. | 10,500 | ||
| To A’s capital A/c | 7,000 | ||||
| To C’s capital A/c | 3,500 | ||||
| (Being profit during the year distributed among partners in new profit sharing ratio i.e., 2 : 1) | |||||
Comment if you have any questions.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 23 Chapter 6 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 23 Chapter 6 of +2 Part-1 - USHA Publication 12 Class Part - 1" instantly.
