Question 48 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 48 Chapter 6 of +2-A

Question 48 Chapter 6 of +2-A

48. X, Y, and Z are partners sharing profits in the ratio of 5: 3: 7. X retired from the firm. Y and Z decided to share future profits in the ratio of 2 : 3. The adjusted Capital Accounts of Y and Z showed a balance of 49,500 and 1,05,750 respectively. The total amount to be paid to X is 1,35,750. This amount is to be paid by Y and Z in a manner that their capitals become
proportionate to their new profit-sharing ratio. Calculate the amount to be brought in or to be paid to partners.

The solution of Question 48 Chapter 6 of +2-A: –

Total Capital Before X retirement = 49,500 + 1,05,750 + 1,35,750

= 2,91,000

Y’s New Capital = Total Capital Before X retirement X Z’s share
         
  = 2,91,000 X 2
5
         
  = Rs 1,16,400

 

Z’s New Capital = Total Capital Before X retirement X Z’s share
         
  = 2,91,000 X 3
5
         
  = Rs 1,74,600

 

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

Addition/withdrawal in/from Capital A/c = New Capital Amount Balance of Capital Amount after all adjustments
         
Addition/withdrawal by Y’s in/from Capital A/c = 1,16,400 49,500
  = 66,900/-    

 

Addition/withdrawal by Y’s in/from Capital A/c = 1,74,600 1,05,750
  = 68,850/-    

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)

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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2 Book 1 min - Question 48 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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