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, Payment to Deepa 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 i.e Asha and Lata.
- ARs.1,80,000 & Rs.1,70,000
- BRs.1,80,000 & Rs.60,000
- CRs. 60,000 & Rs.1,60,000
- DRs.1,60,000 & Rs. 80,000
Solution & Step-by-step Explanation
Let's calculate step by step: Find the New Profit Sharing Ratio:Old ratio of Asha, Deepa, and Lata = .Deepa (middle partner with share) retires.Since no special purchasing details are given, the new profit-sharing ratio between Asha and Lata is simply their remaining relative historical ratio: .Find the Total Capital of the reconstituted firm:Aggregated Adjusted Capitals of continuing partners:
Divide this Total Capital according to the New Ratio ():
Divide this Total Capital according to the New Ratio ():