Question

Mohit. Neeraj and Sohan are partners in a firm sharing profits in the ratio
the new firm will be fixed at Rs. 1,20,000. The capital accounts of Mohit
of 2:1:1. Neeraj retires and Mohit and Sohan decided that the capital of
after making all the adjustments. Calculate the actual cash to be paid off
and Sohan show a credit balance of Rs. 82.000 and Rs. 41,000 respectively
or to be brought in by the continuing partners and pass the necessary
Illustration 14
journal entries.​

Answer 1

Explanation:

Mohit, Neeraj and Sohan are partners in a firm sharing profits in the ratio of

. Neeraj retires and Mohit and Sohan decided that the capital of the new firm will be fixed at Rs. 1,20,000. The capital accounts of Mohit and Sohan show a credit balance of Rs. 82,000 and Rs. 41,000 respectively after making all the adjustments. Calculate the actual cash to be paid off or to be brought in by the continuing partners and pass the necessary journal entries.

Answer 2

Explanation:

Mohit. Neeraj and Sohan are partners in a firm sharing profits in the ratio

the new firm will be fixed at Rs. 1,20,000. The capital accounts of Mohit

of 2:1:1. Neeraj retires and Mohit and Sohan decided that the capital of

after making all the adjustments. Calculate the actual cash to be paid off

and Sohan show a credit balance of Rs. 82.000 and Rs. 41,000 respectively

or to be brought in by the continuing partners and pass the necessary

Illustration 14

journal entries.