1) C brings proportionate cap. He brings 7000 as g/w. 2) debtors are good. 3) depriciate stock@5% and furniture@10%. 4) an o/s bill for repairs of 1000 will be brought in the books. 5) half of investments taken by A and B in PSR. 6) bank loan is paid off. 7) partners NEW PSR is 3;3;2. PREPARE REVALUATION a/c, PARTNERS CAPITAL a/c, BALANCE SHEET.
Dear Student
Working note
Calculation of Sacrifice / Gain
Sacrifice Ratio = 9:1
A and B 's Capital after adjustments = 34310+26040 = 60350
C's Share = 1/4
Remaining = 1-1/4 = 3/4
Firm's Capital = 60350*4/3 = 80467
C's Share = 80467 * 1/4 = 20117
Regards
Working note
Calculation of Sacrifice / Gain
A | B | C | |
---|---|---|---|
Old PSR | 3/5 | 2/5 | |
New PSR | 3/8 | 3/8 | 1/4 |
9/40 | 1/40 | ||
Sacrifice | Sacrifice |
Sacrifice Ratio = 9:1
A and B 's Capital after adjustments = 34310+26040 = 60350
C's Share = 1/4
Remaining = 1-1/4 = 3/4
Firm's Capital = 60350*4/3 = 80467
C's Share = 80467 * 1/4 = 20117
Regards