Question 26 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Parat – 1

Question 26 Chapter 4 of +2- Part-

Question 26 Chapter 4 of +2-Part-1

26. (Adjustment of Capital) A, B and C were partners, sharing profits and losses in 4:3:2 ratio respectively. They changed their profit sharing ratio to 2:4:3. On 31st March 2018, when their capitals after necessary adjustments stood at Rs.39,300; Rs.39,600 and Rs.18,300 respectively. The entire capital of the newly constituted firm is fixed at Rs.1,08,000 as per new profit sharing ratio. Calculate the actual cash to be paid off or to be brought in by the partners and pass necessary journal entries.

 

The solution of Question 26 Chapter 4 of +2 Part-1: – 

Total capital of Reconstituted Firm = Rs.1,08,000

Particular
A B C
New profit sharing ratio = 2:4:3      
A’s Capital (1,08,000*2/9) 24,000
B’s Capital (1,08,000*4/9) 48,00
C’s Capital (1,08,000*3/9) 36,000

 

(ii) Calculation of cash to be brought in or paid off to partners:

Particular
A B C
Partners’ capitals in Reconstituted firm 24,000 48,000 36,000
Existing capitals of partners 39,300 39,600 18,300
Cash to be brought/paid off (15,300) (8,400) (17,700)
C’s Capital (1,08,000*3/9) Paid off Brought Brought

 

In the Books of _______________
Date Particulars
L.F. Debit Credit
           
(i) A’s Capital a/c Dr.   15,300  
  To Cash a/c       15,300
  (Being excess capital withdrawn by partner)        
           
(ii) Cash a/c Dr.   26,100  
  To B’s Capital a/c       8,400
  To C’s Capital a/c       17,700
  (Being shortage in the capital brought in by partners)        
           

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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2 Book 1 min - Question 26 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Parat - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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