Question

065) Sushma, Gautam and Kanika were partners in a firm sharing profits in the ratio of 5.3.2. Oni
March, 2018, their Balance Sheet was as follows:
Balance Sheet of Sushma, Gautam and Kanika as at 31st March, 2018
Liabilities
Amount
Amount Assets
Creditors
60000 Cash at Bank
140000
Employees' Provident Fund
40000 Sundry Debtors
160000
Profit and Loss Account
100000 Stock
240000
Capital :
Investments
200000
Sushma 3,00,000
Fixed Assets
360000
Gautam 2,50,000
Kanika 3,50,000 900000
1100000
1100000
On the above date, Sushma retired and it was agreed that: (i) Fixed Assets will be reduced to
2.90,000.
(ii) A provision of 5% on debtors for bad and doubtful debts will be created.
(111) Stock was to be valued at < 2,18,000. Sushma took over the stock at this value.
(iv) Goodwill of the firm on Sushma's retirement was valued at 8.00.000. Sushma's share of
goodwill was treated by debiting Gautam and Kanika's Capital Accounts.
(v) Sushma was paid cash brought by Gautam and Kanika in such a way that their capitals became
in profit sharing ratio and a balance of 58,000 was left in the bank.
(VI) Gautam and Kanika will share the future profits in the ratio of 2:3
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the
reconstituted firm.




Pls guys its urgent I need help​

Answer 1

Explanation

Correct option is B)

average profit =10000+9000+11000+7000+8000/5

=45000/5=9000

goodwill =9000*3=27000

Y's share of goodwill=27000*2/6=