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Question : X, Y and Z are partners in a firm sharing profits in the ratio of 3: 2: 1. On 1 st April, 2009, retires from the firm .X and Z agree that the capital of the new firm shall be fixed at Rs. 2,10,000 in the profit-sharing ratio.The Capital Accounts of X and Z after all adjustments on the date of retirement showed balance of Rs. 1,45,000 and Rs. 63,000 respectively. the amount of actual cash to be brought in or to be paid to the partners will be

Option 1: Z debited Rs 10,500 and X credited by Rs 12,500

Option 2: Z debited Rs 10,500 and X debited by Rs 12,500

Option 3: Z credited by Rs 10,500 and xcredited by Rs 12,500

Option 4: Z debited by Rs 10,500 and Y credited by Rs 12,500


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Z debited Rs 10,500 and X credited by Rs 12,500


Solution : Answer = Z debited Rs 10,500 and X credited by Rs 12,500

Total Capital of the New firm = 2,10,000

X's share = $2,10,000\times\frac{3}{4} = 1,57,500$

Z's share = $2,10,000\times\frac{1}{4} = 52,500$

Bank A/c Dr 12,500

To X's Capital - 12,500

(1,57,500 - 1,45,000)

Z's Capital A/c Dr 10500

To Bank 10500
Hence, the correct option is 1.

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