Dear Experts , Please Help in Solving Illustration no 9 With Proper Working Notes â€¢ ofGaining Ratio: 13127 13 - Accountancy - Reconstitution- Retirement/Death of a Partner

Question

Dear
Experts , Please Help in Solving Illustration no 9 With Proper
Working Notes

Neha Chopra · Accepted Answer

Dear Student,

Since old ratio was 4:3:1 & B retires selling his share to A
& C for Rs 3,600 & Rs 4,500 respectively which implies
gaining ratio is 4:5 of 3:8
Thus, A's gain = 38×49=1272
and C's gain = 38×59=1572
So, new ratio for A = 48+1272=4872
new ratio for C = 18+1572=2472
Thus, new ratio is 48:24 or 2:1

Journal entries :

Date
Particulars
LF
Amount (in
Rs)
Amount (in
Rs)

A's Capital
A/c
Dr
3,600

C's Capital
A/c
Dr
4,500

To B"s Capital
A/c

8,100

(B's share of profit sold
to A & C in the ratio of 4:5)

Cash
A/c
Dr
8,100

To A's Capital
A/c

3,600

To C's Capital
A/c

4,500

(Cash brought in by
existing partners)

Profit & Loss
Appropriation A/c
Dr
10,500

To A's Capital
A/c

7,000

To C's Capital
A/c

3,500

(Profit after B's
retirement distributed among A & C in new ratio of
2:1)

Regards,

Date	Particulars	LF	Amount (in Rs)	Amount (in Rs)
	A's Capital A/c	Dr	3,600
	C's Capital A/c	Dr	4,500
	To B"s Capital A/c			8,100
	(B's share of profit sold to A & C in the ratio of 4:5)

	Cash A/c	Dr	8,100
	To A's Capital A/c			3,600
	To C's Capital A/c			4,500
	(Cash brought in by existing partners)

	Profit & Loss Appropriation A/c	Dr	10,500
	To A's Capital A/c			7,000
	To C's Capital A/c			3,500
	(Profit after B's retirement distributed among A & C in new ratio of 2:1)