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.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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 profit 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.
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