Q.No.43 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 43 Chapter 6 of +2-A

43. X, Y, and Z are partners in a firm sharing profits in the ratio of 3: 2: 1. On 1st April 2009, Y retires from the firm. X and Z agree that the capital of the new firm shall be fixed at Rs 2,10,000 in the profit-sharing ratio. The Capital Accounts of X and Z after all adjustments on the date of retirement showed a balance of Rs 1,45,000 and Rs 63,000 respectively. State the amount of actual cash to be brought in or to be paid to the partners.

The solution of Question 43 Chapter 6 of +2-A: -

Old Ratio of X, Y, and Z = 3: 2: 1

Y retires from the firm.

New Ratio of X and Z = 3: 1

Calculation of New Share capital: 

The total capital of the New Firm = Rs 5,400

X’s New Capital		Firm’s Total Capital	X	New share of X
	=	2,10,000	X	3
				4
	=	Rs 1,57,500

 

X’s New Capital		Firm’s Total Capital	X	New share of X
	=	2,10,000	X	1
				4
	=	Rs 52,500

Calculation of Addition/withdrawal of Capital by the X and Y

Addition/withdrawal by X's in/from Capital A/c	=	New Capital Amount	-	Balance of Capital Amount after all adjustments
	=	1,57,500	-	1,45,000
	=	12,500/-

 

addition/withdrawal by Y's in/from Capital A/c	=	New Capital Amount	-	Balance of Capital Amount after all adjustments
	=	52,500	-	63,000
	=	(-) 10,500/-

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

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