X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 7. X retired from the firm. Y and Z decided to share future profits in the ratio of 2 : 3. The adjusted Capital Accounts of Y and Z showed balance of ₹ 49,500 and ₹ 1,05,750 respectively. The total amount to be paid to X is ₹ 1,35,750. This amount is to be paid by Y and Z in a manner that their capitals become proportionate to their new profit-sharing ratio. Calculate the amount to be brought in or to be paid to partners.

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Solution

New Capital = 49,500 + 1,05,750 + 1,35,750 = Rs 2,91,000

$\begin{array}{l} Y' s New Capital = 2, 91, 000 \times \frac{2}{5} = 1, 16, 400 \\ Z' s New Capital = 2, 91, 000 \times \frac{3}{5} = 1, 74, 600 \end{array}$

Y brings in Rs 66,900 (1,16,400 – 49,500)

Z brings in Rs Rs 68,850 (1,74,600 – 1,05,750)

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Liabilities		₹	Assets	₹
Sundry Creditors		39,750	Bank( Minimum Balance)	15,000
Employees Provident Fund		5,250	Debtors	97,500
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(ii) Fixed Assets be appreciated by 20% .
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Prepare Revaluation Account , Capital Accounts of all partners and the Balance Sheet of the New Firm.

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New Capital = 49,500 + 1,05,750 + 1,35,750 = Rs 2,91,000 Y's New Capital=2,91,000×25=1,16,400Z's New Capital=2,91,000×35=1,74,600 Y brings in Rs 66,900 (1,16,400 – 49,500) Z brings in Rs Rs 68,850 (1,74,600 – 1,05,750)