Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 :2:1. Deepa retires. After making all adjustments relating to revaluation, goodwill and accumulated protit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1.60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are required to calculate the new capitals of the partners and record necessary journal entries for bringing in or withdrawal of the necessary amounts involved.
Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 :2:1. Deepa retires. After making all adjustments relating to revaluation, goodwill and accumulated protit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1.60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are required to calculate the new capitals of the partners and record necessary journal entries for bringing in or withdrawal of the necessary amounts involved.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1EB: The partnership of Michelle, Amal, and Maureen has done well. The three partners have shared profits...
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