# geeta, sita and sarita are partners in a firm sharing profits and losses in the ratio 5:3:2. sita decided to retire on 1 April,2016. geeta and sarita decided to share profits and losses equally in future. the capitals of geeta and sarita after all adjustments with respect of revaluation, goodwill and reserve etc showed a balance of RS.1,00,000 and RS. 60,000 respectively. cash payable to sita of RS. 1,50,000 was to be contributed by geeta and sarita in a such a way that their capitals would be proportion to their PSR. pass the journal entries in the books of the firm to record the transactions. show the working clearly. . answer my question asap.

Dear Student
 Journal in the books Date Particulars Debit Credit Cash A/c Dr. 1,50,000 To Geeta's Capital A/c 55,000 To Sarita's Capital A/c 95,000 (Being Cash brought in by both the pratners to pay Sita and to make their capital in proportion to PSR) Sita's Capital A/c Dr. 150,000 To Cash A/c 150,000 (Being Sita paid on retirement)

 Adjustment Of Capital Total Capital of new Firm = Capital of Geeta + Capital of Sarita + Amt to be paid to Sita 1,00,000 + 60,000 + 1,50,000 310,000 Geeta's share of Capital 3,10,000 x 1/2 155,000 Existing Capital of Geeta after all adjustments 100,000 Amt brought in by Geeta 1,55,000 - 1,00,000 55,000 Sarita's share of Capital 3,10,000 x 1/2 155,000 Existing Capital of Sarita after all adjustments 60,000 Amt brought in by Sarita 1,55,000 - 60,000 95,000

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