Question

P. Q. and R are partners in a firm in 2:1: 2 ratio. Their capitals after making adjustment for profits, reserves, losses were P 45,000.Q25,000 and 30,000. The new profit ratio is 5:3:2. It was decided to have capital in new ratio and any adjustment is to be made in cash. Record adjustment in Capital in Journal​

Answer 1

Answer:

TRY TO SOLVE FROM THESE EXERCISES

Explanation:

2. A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. B was guaranteed a

profit of Rs. 2,00,000. During the year the firm earned a profit of Rs. 84,000. Calculate the

net amount of Profit / Loss transferred to the capital accounts of A and C.1

Solution: Net Amount of Loss transferred to:

A’s Capital Account: Rs. 87,000 ½

C’s Capital Account: Rs. 29,000 ½

3. H, P and S were partners in a firm sharing profits in the ratio of 4 : 3 : 3. On August 1, 2017, P

died. His 20 % share was acquired by H and remaining by S. Calculate the new profit sharing

ratio. 1

Solution: Ratio of H, P and S is 4 : 3 : 3

H’s Gain = 3/10 X 20 /100 = 3 /50

H’s new share = H’s old share + H’s Gain

= 4/10 + 3/50 = 23/50 ½

S’s Gain = 3/10 X 80 /100 = 12 /50

S’s new share = S’s old share + S’s Gain

= 3/10 + 12/50 = 27/50 ½

New Profit sharing Ratio of H and S is 23 : 27

Answer 2

Explanation:

total capital =45000+25000+30000=100000

ratio of capital=5:3:2

then

P's capital=100000×5/10=50000

Q's capital=100000×3/100=30000

R's capital =100000×2/100=20000

so,

cash a/c dr 10000

to p's capital a/c. 5000

to q's capital a/c. 5000

(cash being by p and q as capital for maintaining it in capital ratio)

it's capital a/c dr. 5000

to cash. 5000

(capital withdraw by r for adjustment of capital in ratio)