Q 30b and 31 please give answer today please Q 30 (B) Arun and Varun - Accountancy - Reconstitution- Change in Existing Profit Sharing Ratio

Question

Q 30b and 31 please give answer today please

Q 30 (B) Arun and Varun were in partnership
sharing profits in the ratio of 2 : 3 With effect from
1st May 2016 they agreed to share profits in the ratio
of 1 : 2 For this purpose the goodwill of the firm is to be valued
at two year's purchase of the average profits of last three years,
which were Rs 1,50,000, Rs 1,40,000 and Rs 2,20,000 respectively
Reserves appear in the books at Rs 1,10,000 Partners do not want to
distribute the reserve You are required to give effect o the change
by passing a single journal entry

[Ans Debit Varun and Credit Arun by Rs 30,000
]

Q 31 X, Y and Z are partners sharing profits and losses in the
ratio of 7 : 5 : 4 Their balance sheet as at 31st March
2016 stood as follows :

Partners decided that with effect from 1st April 2016,
they will share profits and losses in the ratio of 3 : 2 : 1 For
this purpose goodwill of the firm was valued at Rs 1,50,000 The
partners do not want to distribute the general reserve and
profits

Pass a single journal entry to record the change and prepare a
revised balance sheet

[Ans Debit X by Rs 15,000 and Y by Rs 5,000, Credit Z by Rs 20,000
Total of Balance Sheet Rs 6,00,000 ]

Nitin Verma · Accepted Answer

Dear Student,

30(b)

Journal

Date
Particulars
L F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Varun’s Capital A/c
Dr

30,000

To Arun’s Capital A/c

30,000

(Adjustment entry made due to change in
ratio)

Working Note:

Calculation of Sacrifice or gain:Arun=25-13=115sacrificeVarun==35-23=-115gainCalculation of amount of GoodwillAverage profit=1,50,000+1,40,000+2,20,0003=Rs 1,70,000Goodwill=1,70,000×2=Rs 3,40,000Total Amount to be adjusted=Goodwill+Reserve=3,40,000+1,10,000=Rs 4,50,000Arun and Varun's Share=4,50,000×115=Rs 30,000
Note: Please ask questions in individual lot

Regards

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Varun’s Capital A/c	Dr.		30,000
	To Arun’s Capital A/c				30,000
	(Adjustment entry made due to change in ratio)