Question - 11

A, B and C are partners sharing profits and losses in the ratio of 4:3:1 respectively. B retireds, selling his share of profit to A and C for Rs. 8,100. Rs. 3,600 being paid by A and Rs. 4,500 by C. The profit for the year after B's retirment was Rs. 10,500.

You are required (i) to give neccessary journal entries to record the above said sale of B's share to A and C and (ii) to calculate the new profit sharing ratio, and (iii) distribute the profit between A and C.

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