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
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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