Solve this:
Dear Student
Note : It has been assumed that Adjustment of capital is carried out through cash receipt and withdrawn by partners.
Regards
| Revalution A/c | |||||
| Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) |
| Provision for Doubtful Debt | 6,000 | Land and Buliding | 40,000 | ||
| Stock | 8,000 | Unexpied Insurance Premium | 2,000 | ||
| Creditors | 20,000 | ||||
| Capital A/c - 48,000 in 3:2:1 | |||||
| A | 24,000 | ||||
| B | 16,000 | ||||
| C | 8,000 | 48,000 | |||
| 62,000 | 62,000 | ||||
| Partner's Capital A/c | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| B's Capital A/c | 15,000 | 35,000 | Balance b/d | 340,000 | 150,000 | 140,000 | |
| Advertisement Expenditure | 7,500 | 5,000 | 2,500 | A's Capital A/c | 15,000 | ||
| Bank A/c | 41,500 | 150,000 | B's Capital A/c | 35,000 | |||
| B's Loan A/c | 61,000 | Revaluatioin A/c | 24,000 | 16,000 | 8,000 | ||
| Bank A/c | 89,500 | ||||||
| To Bal C/d | 300,000 | 0 | 200,000 | ||||
| 364,000 | 216,000 | 237,500 | 364,000 | 216,000 | 237,500 | ||
| Balancesheet | |||||
| Liabilities | Amount (in Rs) | Assets | Amount (in Rs) | ||
| Capital | Land and Building | 440,000 | |||
| A | 300,000 | Debtors | 80000 | ||
| C | 200,000 | Less :Provision | 10000 | 70,000 | |
| Unexpied Insurance Premium | 2,000 | ||||
| Creditors | 140,000 | Stock | 132,000 | ||
| Provision for Legal Damages | 40,000 | Computers | 40,000 | ||
| Expenses Owing | 10,000 | Cash At bank | 67,000 | ||
| B' Loan A/c | 61,000 | ||||
| 751,000 | 751,000 | ||||
| Calculation of Sacrificing and Gaining Partners | |||
| A | B | C | |
| Old Ratio | 1/2 | 1/3 | 1/6 |
| Less : New Ratio | 3/5 | 0 | 2/5 |
| - 3/30 | 1/3 or 10/30 | - 7/30 | |
| Gaining | Sacrificing | Gaining | |
| Goodwill Adjustment | ||
| Gaining Ratio | 3:7 | |
| Total Value of Goodwill | 150,000 | |
| B's share of Goodwill | (1,50,000 x 1/3) | 50,000 |
| Distribution in Gaining Ratio from Capital A/c's | ||
| A | (50,000 x 3/10) | 15,000 |
| C | (50,000 x 7/10) | 35,000 |
| Adjustment Of Capital | ||
| Total Capital of new Firm | 500,000 | |
| A's share of Capital | (5,00,000 x 3/5) | 300,000 |
| Existing Capital of A | 341,500 | |
| Cash withdrawn | (300000 -341500) | 41,500 |
| C's share of Capital | (5,00,000 x 2/5) | 200,000 |
| Existing Capital of C | 110,500 | |
| Cash Brought | (200000 -110500) | 89,500 |
Note : It has been assumed that Adjustment of capital is carried out through cash receipt and withdrawn by partners.
Regards