A,B,C were partners sharing profits in the ratio of 6:4:5 Their capital were A100,000,B 80,000,C 60,000 On 1st April 2009,B - Accountancy - Reconstitution- Retirement/Death of a Partner

Question

A,B,C were partners sharing profits in the ratio of 6:4:5 Their
capital were A100,000,B 80,000,C 60,000 On 1st April 2009,B retried
from the firm and the new profit sharing ratio between A and C was
decided as 11:4 On Bretirement the g/w of the firm valued 180,000
Pass the necessary entries after B retirement

Manisha Arora · Accepted Answer

Journal Entry

Date
Particulars
L F
Debit Amount
Rs
Credit Amount
Rs

Aâ€™s Capital A/c
(1,80,000*5/15)
Dr

60,000

To Bâ€™s Capital A/c
(1,80,000*4/15)

48,000

To Câ€™s Capital A/c
(1,80,000*1/15)

12,000

(A compensate B for his share of goodwill and
also compensate C, C is a sacrificing partner)

Working
Notes:
Old Ratio of A:B:C = 6:4:5
New Ratio of A:C = 11:4
Gaining Ratio = New Ratio - Old Ratio
A's Gaining Ratio = 11/15-6/15 = 5/15
C's Gaining Ratio = 4/15-5/15 = 1/15 (Sacrifice)

	Journal Entry
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		A’s Capital A/c (1,80,000*5/15)	Dr.		60,000
		To B’s Capital A/c (1,80,000*4/15)				48,000
		To C’s Capital A/c (1,80,000*1/15)				12,000
		(A compensate B for his share of goodwill and also compensate C, C is a sacrificing partner)