Ajay, Aman and Anand were partner's in a firm sharing profit in the ratio of $5 : 1 : 4$ . Their Balance Sheet as on $31 - 3 - 2015$ was as follows:
From $1 - 4 - 2015$ Ajay, Aman and Anand decided to share future profits equally. For this it was agreed that:
(i) Goodwill of the firm be valued at Rs. $1, 80, 000$ .
(ii) Land be revalued at Rs. $6, 00, 000$ and building be depreciated by $10 %$ .
(iii) Creditors of Rs. $15, 000$ were not likely to be claimed and hence be written-off. Prepare Revaluation Account Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

Open in App

Solution

Working Notes
Old Ratio New Ratio
$5 : 1 : 4$ $1 : 1 : 1$
S/R of Ajay $=$ Old Ratio $= \frac{5}{10} - \frac{1}{3} = \frac{5}{30} \Rightarrow$ Sacrificing
S/R of Am an $=$ Old Ratio - New Ratio $= \frac{1}{10} - \frac{1}{3} = - \frac{7}{30} \Rightarrow$ Gaining
S/R of Aanand $=$ Old Ratio - New ratio $= \frac{4}{10} - \frac{1}{3} = \frac{2}{30} \Rightarrow$ Sacrificing
Aaman will compensate Ajay and Anand
Aman's Capital A/c Dr. $42, 000$
To Ajay's Capital A/c $30, 000$ .
To Anand's Capital A/c $12, 000$ .

Suggest Corrections

Similar questions

Q. A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Their Balance Sheet as on 31st March, 2015 was as follows:


Liabilities		Amount (₹)	Assets	Amount (₹)
Creditors		50,000	Land	50,000
Bills Payable		20,000	Building	50,000
General Reserve		30,000	Plant	1,00,000
Capital A/cs:			Stock	40,000
A	1,00,000		Debtors	30,000
B	50,000		Bank	5,000
C	25,000	1,75,000
		2,75,000		2,75,000

From 1st April, 2015, A, B and C decided to share profits equally. For this it was agreed that:
(i) Goodwill of the firm will be valued at ₹ 1,50,000.
(ii) Land will be revalued at ₹ 80,000 and building be depreciated by 6%.
(iii) Creditors of ₹ 6,000 were not likely to be claimed and hence should be written off.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm.

A, B

and

C

were partners in a firm sharing profits in the ratio of

3 : 2 : 1

. Their Balance Sheet as on

31 s t

March,

2015

was as follows :

Liabilities	Rs.	Assets	Rs.
Creditors	50,000	Land	50,000
Bills Payable	20,000	Building	50,000
General Reserve	30,000	Plant	1,00,000
Capital A/cs: $A$ 1,00,000 $B$ 50,000 $C$ 25,000	1,75,000	Stock	40,000
		Debtors	30,000
		Bank	5,000
	2,75,000		2,75,000

From

1 s t

April,

2015, A, B

and

C

to share profits equally. For this it was agreed that :
(i) Goodwill of the firm will be valued at Rs.

1, 50, 000

(ii) Land will be revalued at Rs.

80, 000

and building be depreciated by

6 %

(iii) Creditors of Rs.

6, 000

were not likely to be claimed and hence should be written off.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm.

Q. Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3. On 1st April, 2016, their Balance Sheet was as follows:

BALANCE SHEET OF SURESH, RAMESH, MAHESH AND Ganesh as on 1st April, 2016
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital A/cs:			Fixed Assets	6,00,000
Suresh	1,00,000		Current Assets	3,45,000
Ramesh	1,50,000
Mahesh	2,00,000
Ganesh	2,50,000	7,00,000
Sundry Creditors		1,70,000
Workmen Compensation Reserve		75,000


		9,45,000		9,45,000

From the above date, the partners decided to share the future profits equally. For this purpose the goodwill of the firm was valued at ₹ 90,000. It was also agreed that:
(a) Claim against Workmen Compensation Reserve will be estimated at ₹ 1,00,000 and fixed assets will be depreciated by 10%.
(b) The Capitals of the partners will be adjusted according to the new profit-sharing ratio. For this, necessary cash will be brought or paid by the partners as the case may be.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

Q. L, M and N were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Their Balance Sheet on 31st March, 2015 was as follows:


Liabilities		₹	Assets	₹
Creditors		1,68,000	Bank	34,000
General Reserve		42,000	Debtors	46,000
Capital's A/cs: L	1,20,000		Stock	2,20,000
M	80,000		Investments	60,000
N	40,000	2,40,000	Furniture	20,000
			Machinery	70,000

		4,50,000		4,50,000

On the above date, O was admitted as a new partner and it was decided that:
(i) The new profit-sharing ratio between L, M, N and O will be 2 : 2 : 1 : 1.
(ii) Goodwill of the firm was valued at ₹ 1,80,000 and O brought his share of goodwill premium in cash.
(iii) The market value of investments was ₹ 36,000.
(iv) Machinery will be reduced to ₹ 58,000.
(v) A creditor of ₹ 6,000 was not likely to claim the amount and hence was to be written off.
(vi) O will bring proportionate capital so as to give him 1/6th share in the profits of the firm.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

Q. Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows:

BALANCE SHEET OF RAM, MOHAN, SOHAN AND HARI as on 1st April, 2016
Liabilities		₹	Assets	₹
Capital A/cs:			Fixed Assets	9,00,000
Ram	4,00,000		Current Assets	5,20,000
Mohan	4,50,000
Sohan	2,50,000
Hari	2,00,000	13,00,000
Workmen Compensation Reserve		1,20,000



		14,20,000		14,20,000

From the above date, the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purpose the goodwill of the firm was valued at ₹ 1,80,000. The partners also agreed for the following:(a) The Claim for workmen compensation has been estimated at ₹ 1,50,000.
(b) Adjust the capitals of the partners according to the new profit-sharing ratio by opening Partners' Current Accounts.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

Join BYJU'S Learning Program