[CBSE] Retirement of a Partner solutions edition 2022-23 of TS Grewal’s Book

55

Profit for the year ended 31st March, 2021; ₹ 3,60,000/-

Bhanu retired on 30th September 2021

Bhanu’s Share of Profit = 3,60,000 x 1/3* x 6/12**

= ₹ 60,000/-

*1/3 is mean, 3 partner distributed equally of last year profit.

**30th September is half of the year that's why it divided by 6/12.

(i)

Profit & Loss Suspense A/c               Dr.   60,000
   To Bhanu's Capital A/c                              60,000
(Bhanu's Profit trf. to his capital A/c

(ii)

Old Ratio of Amrit, Bhanu, Charu: 1:1:1

New Ratio of Amrit, Charu = 3:2

Gaining Ratio = New Ratio – Old Ratio

Amrit = 3/5 – 1/3 = 9-5/15 = 4/15

Charu = 2/5 – 1/3 = 6-5/15 = 1/15

Gaining Ratio = 4:1

Bhanu’s Share in Profit = 3,60,000 x 1/3 x 6/12 = ₹ 60,000/-

Amrit’s Contribution = 60,000 x 4/5 = ₹ 48,000/-

Charu’s Contribution = 60,000 x 1/5 = ₹ 12,000/-

Journal Entry

Particular                          Dr. Amt | Cr. Amt
Amrit's Capital A/c           Dr.   48,000
Charu's Capital A/c           Dr.   12,000
   To Bhanu's Capital A/c                     60,000
(Being Partner's Capital adj.)