Question

14. X, Y and Z are partners sharing profits and losses in the ratio of 3: 2:1. Y retires selling
his share to X and Z for * 16,000, 10,000 being paid by X and * 6,000 by z. The
profit for the year after Y's retirement is 48,000.
Pass entries to (a) record the sale of Y's share to X and Z and (b) distribute the profit
between X and Z.​

Answer 1

Answer:

ANSWER

Particulars

L.F.

Debit (Rs.)

Credit (Rs.)

General Reserve A/c Dr.

1,80,000

Workmen Compensation Reserve A/c Dr.

24,000

To X’s Capital A/c

1,02,000

To Y’s Capital A/c

68,000

To Z’s Capital A/c

34,000

(Being accumulated profit distributed among partners in old ratio)

X’s Capital A/c Dr.

15,000

Y’s Capital A/c Dr.

10,000

Z’s Capital A/c Dr.

5,000

To Profit and Loss A/c

30,000

(Being debit balance in profit and loss A/c distributed among partners in old ratio)

Working note:

1. Calculation of share in credit balance of Reserve

Total credit balance of Reserves = General Reserve + WCF

= 1,80,000 + 24,000

= 2,04,000

X’s share = 2,04,000 X 3/6 = Rs. 1,02,000

Y’s share = 2,04,000 X 2/6 = Rs. 68,000

Z’s share = 2,04,000 X 1/6 = Rs. 34,000

2. Calculation of share in debit balance of Profit and Loss A/c

X’s share = 30,00 X 3/6 = Rs. 15,000

Y’s share = 30,000 X 2/6 = Rs. 10,000

Z’s share = 30,000 X 1/6 = Rs. 5,000

Note: Employer Provident Fund will not be distributed as it is a liability and not accumulated profit.

Please mark me as a brainlist