Question : X, Y and Z were partners sharing profits and losses in the ratio of 4: 3: 2. Y retired on 1st April, 2020 on which date the capitals of X, Y and Z after all adjustments stood at Rs. 65,800 ; Rs. 57,225 and Rs. 33,800 respectively. Capital of the reconstituted firm will be readjusted by bringing in or paying cash so that the future capitals of X and Z be in their future profit-sharing ratio. The amount of cash to be paid or to be brought in by the continuing partners.
Option 1: Rs 800
Option 2: Rs 500
Option 3: Rs 1,000
Option 4: Rs 600
Correct Answer: Rs 600
Solution : Answer = Rs 600
Adjusted Capital of X and Z = 65800 + 33800
Total Capital of the New firm = 99600
X's share = $99600\times\frac{2}{3} = 66400$
Z's share = $99600\times\frac{1}{3} = 33200$
X = 66400 - 65800 = 600
Z = 33800 - 33200 = 600 Hence, the correct option is 4.
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