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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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 ₹2,10,000 in the new profit-sharing ratio. The Capital Accounts of X and Z after all adjustments on the date of retirement showed balances of ₹1,45,000 and ₹63,000 respectively. State the amount of actual cash to be brought in or paid to the partners. (AI 2020)
New Ratio (X : Z) = 3 : 1 (old ratio, Y removed). Total Capital of the new firm = ₹2,10,000. X’s new capital = 2,10,000 × 3/4 = ₹1,57,500. Z’s new capital = 2,10,000 × 1/4 = ₹52,500.
ASCERTAINMENT OF CASH TO BE BROUGHT IN / PAID OFF
| Particulars | X (₹) | Particulars | Z (₹) |
|---|---|---|---|
| New Capital | 1,57,500 | New Capital | 52,500 |
| Less: Existing Capital | 1,45,000 | Less: Existing Capital | 63,000 |
| Cash to be brought in | 12,500 | Cash to be paid off | 10,500 |
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 "T.S. Grewal Class 12 Chapter 5 Q.42 - Retirement of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Retirement of a Partner.
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.
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