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

Question 26 Chapter 4 of +2- Part-
Q-26 - CH-4 - Usha +2 Book 2018 - Solution

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Question 26 Chapter 4 of +2-Part-1

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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
ABC
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

 

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

Particular
ABC
Partners’ capitals in Reconstituted firm24,00048,00036,000
Existing capitals of partners39,30039,60018,300
Cash to be brought/paid off(15,300)(8,400)(17,700)
C’s Capital (1,08,000*3/9)Paid offBroughtBrought

 

Journal
DateParticulars
L.F.DebitCredit
      
(i)A’s Capital a/cDr. 15,300 
 To Cash a/c   15,300
 (Being excess capital withdrawn by partner)    
      
(ii)Cash a/cDr. 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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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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