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CBSE Class 12-commerce Answered

In retirement of partner que no. 53 what the mean of adjustment (f)why we will substrate 18000 cash 
Asked by Smitakhadayate20 | 12 Aug, 2018, 07:44: PM
answered-by-expert Expert Answer
In Question 53 of TS Grewal problems, the adjustment (f) specifies that B, the retiring partner is to be paid in full from the cash that will be actually brought in by the other two partners (A and C) keeping two conditiona intact:
 
(a) The capital of both A and C remain in PSR
(b) Firm has Rs 10,000 Cash in Hand after payment to B.
 
This can be easily carried out by correctly estimating the amount that is actually required with the firm (to be brought in by A and C). This means Rs 48,200 to be paid to B and Rs 10,000 minimum cash balance is required. Also, the firm already had Rs 18,000 as cash in hand with them which they may use to pay off to outgoing partner.
 
Thus, Rs 48,200 + 10,000 - 18,000 = Rs 40,200 is required to be brought in by A and C.
 
And this amount of Rs 40,200 should be brought in, in a manner their capitals come in PSR. So, we will adjust capitals of A and C. This can be done by distribution of Total Capital of the Firm including Rs 40,200 to be brought in, in 3:1.
Answered by | 13 Aug, 2018, 10:30: AM

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