Accountancy, asked by pm3271523, 7 months ago

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.

Answers

Answered by msjayasuriya4

Answer:

A, B & C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs.60,000. Find the contribution of A and C to compensate B.

HARD

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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

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