question_answer

R Q and R are partners sharing profit in the ratio 3:2:1. Q retires, P and R decided that the capital of the new firm will be fixed at Rs. 6,00,000 in the profit sharing ratio. The capital accounts of P and R shows a balance of Rs. 5,00,000 and Rs. 1,00,000 respectively on the date of retirement after making all adjustments. Find the actual amount of cash to be brought in or paid off by the remaining partners.

Answer:

                                                                        Adjustment of Capital

Particulars	P (Rs.)	R (Rs.)
New Capital after retirement	\[6,00,000\frac{3}{4}=4,50,000\]	\[6,00,000\frac{1}{4}=1,50,000\]
Old Capital after Adjustment Difference	\[\frac{5,00,000}{50,000}\] Paid off	\[\frac{1,00,000}{50,000}\] brought in

            \[\therefore \] R wil bring Rs. 50,000 and P will withdraw Rs. 50,000 from his capital.