Question : X, Y and Z were partners sharing profits and losses in the ratio of 4: 3: 2. Y retired on 1st April, 2020. On that date capitals of X, Y and Z after all adjustments stood at Rs. 19,650; Rs. 19,800 and Rs. 9,150 respectively. Total capital of the firm as newly constituted is fixed at Rs. 28,000 between X and Z in the proportion of 5/8th and 3/8th after passing entries in their accounts for adjustments. Amount to be paid or to be brought by the continuing partners is
Option 1: X debited by Rs 2,150, Z credited by Rs 1,350
Option 2: X credited by Rs 2,150 Z debited by Rs 1,350
Option 3: X debited by Rs 2,150 Z debited by Rs 1,350
Option 4: X credited Rs 2,150 and Y credited Rs 1,350
Correct Answer: X debited by Rs 2,150, Z credited by Rs 1,350
Solution : Answer = X debited by Rs 2150, Z credited by Rs 1350
Adjusted Capital of
X = 19650
Z = 9150
= 28800
Total Capital of New Firm
X= $28000\times\frac{5}{8} = 17500$
Z = $28000\times\frac{3}{8} = 10500$
| X | Z | X | Z | ||
| To Bank | 2150 | Bal. B/D | 19650 | 9150 | |
| Bal. C/D | 17500 | 10500 | By Bank | 1350 | |
| 19650 | 10500 | 19650 | 10500 |
X's Capital A/c Dr 2150
To Bank - 2150
Bank A/c Dr 1350
To Z's Capital A/c 1350
Hence, the correct option is 1.
