Q. 28. Abha and Bimal are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st 
March, 2015 they admitted Chintu into partnership for 1/5th share in the profits Of the firm. 
On that date their Balance Sheet stood as under: 
Liabilities Amount Assets  Amount
Abha Capital A/c:  120000 Plant and Machinery  130000
Bimal Capital A/c:  100000 Furniture  25000
General Reserve  20000 Investment  100000
Sundry Creditors  100000 Sundry Debtors  50000
    Bank  35000
  340000   340000
Chintu was admitted on the following terms: 
(i) He will bring 80,000 as capital and 30,000 for his share of goodwill premium. 
(ii) Partners will share future profits in the ratio of 5 : 3 : 2. 
(iii) Profit on revaluation of assets and reassessment of liabilities was 7,000. 
(iv) After making adjustments, the Capital Accounts of the partners will be in proportion 
to Chintu's capital. Balance to be paid off or brought in by the old partners by cheque 
as the case may be. 

Prepare the Capital Accounts of the partners and Bank Account. 

Dear Student,
Partners’ Capital Accounts
Dr. Cr.
Particulars Abha Bimal Chintu Particulars Abha Bimal Chintu
Bank A/c   5,800   Balance b/d 1,20,000 1,00,000  
Balance c/d 2,00,000 1,20,000 80,000 Bank A/c     80,000
        Premium for Goodwill A/c 15,000 15,000  
        General Reserve 12,000 8,000  
        Revaluation A/c 4,200 2,800  
        Bank A/c 48,800    
  2,00,000 1,25,800 80,000   2,00,000 1,25,800 80,000
Bank Account
Dr.   Cr.
Particulars Amount
Particulars Amount
Balance b/d 35,000 B’s Capital A/c 5,800
Chintu’s Capital A/c 80,000 Balance c/d 1,88,000
Premium for Goodwill A/c 30,000    
A’s Capital A/c 48,800    
  1,93,800   1,93,800

Working Notes:

Calculation of Sacrificing Ratio
Abha's sacrifice=35-510=110Bimal's sacrifice=25-310=110Sacrificing Rtaio=1:1

Calculation of New Capitals of the Partners
Total Capital of thw Firm=80,000×102=4,00,0004,00,000 in 5:3:2Abha's New Capital=4,00,000×510=2,00,000Bimal's New Capital=4,00,000×310=1,20,000Chintu's New Capital=4,00,000×210=80,000

Adjustment of Capitals

Abha's New Capital (2,00,000) > Abha's Existing Capital (1,51,200) - Abha will bring in 48,800
Bimal's New Capital (1,20,000) < Bimal's Existing Capital (1,25,800) - Bimal will withdraw 5,800

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