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Retirement of partner illustration 4
Accountancy
How to calculate exesss capital paid off to M to make capital proportionate working I have dobt
Answers (1)
Take the balance after adjusting, reserves, goodwill revaluation loss in the accounts of remaining partners you will get 35,000 for K 28000 forM and 21000 for N. M is paid off to make it proportionate i.e. 28000 is for 4/12th ratio (present from capital accounts), now adjust it to 2/10th ratio (Profit sharing ratio). Sathya sir has solved this illustration (last illustration in the module Retirement of partner). See that it will help you understand better
