Question

Burger, Pasta and Pizza are partners having ratio of 2:2:1. Pasta
retires and at that time there was General Reserve of Rs. 60,000 and
Balance of Profit and Loss (Dr.) of Rs.10,000 appearing in the books. Partners agreed to share future profits in the ratio of 3:2
Pass Journal Entries when:
i) Partners decided to distribute above items.
ii)Partners decided not to distribute General Reserve and balance of P/L.

Answer 1

Answer:

Old ratio (A, B and C) = 2 : 2 : 1

B's share = 2/5

B's sahre of goodwill = Rs. 60000 * (2/5) = 24000

Contribution to compensate B by:

A = 24000 * (2/3) = 16000

B = 24000 * (1/3) = 8000