Mohit, Neeraj and Sohan are partners in a firm sharing profits in the ratioof 2 : 1 : 1. Neeraj retires and Mohit and Sohan decided that the capital ofthe new firm will be fixed at Rs. 1,20,000. The capital accounts of Mohit and Sohan show a credit balance of Rs. 82,000 and Rs. 41,000 respectively after making all the adjustments. Calculate the actual cash to be paid off or to be brought in by the continuing partners and pass the necessary journal entries.
Mohit, Neeraj and Sohan are partners in a firm sharing profits in the ratioof 2 : 1 : 1. Neeraj retires and Mohit and Sohan decided that the capital ofthe new firm will be fixed at Rs. 1,20,000. The capital accounts of Mohit and Sohan show a credit balance of Rs. 82,000 and Rs. 41,000 respectively after making all the adjustments. Calculate the actual cash to be paid off or to be brought in by the continuing partners and pass the necessary journal entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mohit, Neeraj and Sohan are partners in a firm sharing profits in the ratio
of 2 : 1 : 1. Neeraj retires and Mohit and Sohan decided that the capital of
the new firm will be fixed at Rs. 1,20,000. The capital accounts of Mohit and Sohan show a credit balance of Rs. 82,000 and Rs. 41,000 respectively after making all the adjustments. Calculate the actual cash to be paid off or to be brought in by the continuing partners and pass the necessary
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