Question

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.

• A. Rs. 1,80,000 & Rs. 1,70,000
• B. Rs. 1,80,000 & Rs. 60,000
• C. Rs. 60,000 & Rs. 1,60,000
• D. Rs. 1,60,000 & Rs. 80,000

Hint:

When partners' capitals are to be adjusted, first find total capital, then distribute in the new profit-sharing ratio.

Answer 1

The Correct Option is B

Step 1: Determine the new profit-sharing ratio.
The original profit-sharing ratio was 3:2:1.
Following Deepa's retirement, the remaining partners, Asha and Lata, will share profits in a new ratio of 3:1.

Step 2: Calculate the total adjusted capital.
Asha's current capital stands at Rs. 1,60,000.
Lata's current capital is Rs. 80,000.
The combined total capital is Rs. 2,40,000.

Step 3: Re-allocate capitals according to the new ratio (3:1).
Total capital is Rs. 2,40,000, divided into 4 parts (3 + 1).
Asha's adjusted share is calculated as 3/4 of the total capital, resulting in Rs. 1,80,000.
Lata's adjusted share is calculated as 1/4 of the total capital, resulting in Rs. 60,000.

Final Answer: \[\boxed{\text{Asha = Rs. 1,80,000, Lata = Rs. 60,000}}\]