Question

X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 7. X retires from the firm. Y and Z decided to share future profits in the ratio of 2 : 3. The adjusted Capital Accounts of Y and Z showed balance of ₹ 49, 500 and ₹ 1,05,750 respectively. The total amount to be paid to X is ₹ 1,35,750. This amount is to be paid by Y and Z in such a way that their capitals become proportionate to their new profit-sharing ratio. Calculate the amount to be brought in or to be paid to partners.

Answer 1

Y brings in Rs 66,900

Z brings in Rs Rs 68,850

Explanation:

New Capital = 49,500 + 1,05,750 + 1,35,750 = Rs 2,91,000

Y's New Capital=2,91,000×$\frac{2}{5}$=1,16,400

Z's New Capital=2,91,000×$\frac{3}{5}$=1,74,600

Y brings in Rs 66,900 (1,16,400 – 49,500)

Z brings in Rs Rs 68,850 (1,74,600 – 1,05,750).