P,Q and R are the partners sharing profit and loss in ratio of 40% , 20% and 40% respectively. Q retires . P is acquiring 3/20 and R is acquiring 1/20 from Q's share
Answers
Answered by
14
Answer:
ANSWER
Calculation of Share of profits
P's Share -3,50,000*5/10 = 1,75,000
Q's share - 3,50,000*4/10 = 1,40,000
R's share - 3,50,000*1/10 = 35,000
R's guaranteed share is 50,000. So,the deficiency of 15,000 (50,000-35,000) is to be contributed by P and Q in the ratio of 3:2
P's contribution = 15,000*3/5=9,000
Q's contribution= 15,000*2/5 =6000
Journal entry is as follows:-
P's capital A/c Dr 9,000
Q's capital A/c Dr 6,000
To R's capital A/c 15,000
(Being deficiency contributed by partners)
Similar questions