Case 5.

Faheem, Fahad and Faris are partners sharing profits in the ratio of 2:1:1. Faheem decided to retire from the firm at that time the balances in their capital accounts stood at OMR 50,000, OMR 40,000 and OMR 30,000 respectively. It was decided that the amount payable to Faheem will be brought by Fahad and Faris in such a way as to make their capitals proportionate to their profit sharing ratio. After Faheems retirement, the new profit sharing ratio between Fahad and Faris will be 2:1.

You are required to;

1. Calculate the amount to be brought by Fahad and Faris and record necessary journal entries for the same.
2. Also record necessary entry for the payment to be made to Faheem after Faheems retirement.