Question

13. Ashok, Bhaskar and Chaman are partners in a firm, sharing profits and losses as Ashok 1/3, Bhaskar 1/2, and
Chaman 1/6 respectively. The Balance Sheet of the firm as at 31st March, 2020 was:
Liabilities
Assets
₹
5,00,000
Capital A/C
Ashok
Bhaskar
Chaman
3,00,000
4,00,000
Building
Plant and Machinery
Furniture
Stock
4,00,000
1,00,000
2,50,000
2.50,000
9,50,000
2,20,000
Debtors
1,80,000
5,000
2.50,000
General Reserve
Sundry Creditors
Loan Payable
Less: Provision for Doubtful Debts
1,50,000
Cash in Hand
1,75,000
85,000
60,000
Advertisement Suspense Account
15,70,000
15,70,000
Chaman retired on 1st April, 2020 subject to the following adjustments:
(a) Goodwill of the firm be valued at * 2,40,000. Chaman's share of goodwill be adjusted into the Capital
Accounts of Ashok and Bhaskar who will share future profits in the ratio of 3:2.
(b) Plant and Machinery to be reduced by 10% and Furniture by 5%.
(c) Stock to be increased by 15% and Building by 10%.
(d) Provision for Doubtful Debts to be raised to 20,000.
Pass Journal entries to record the above transactions in the books of the firm and show the Profit and
Loss Adjustment Account, Capital Account of Chaman and the Balance Sheet of the firm after Chaman's
how to solve it​

Answer 1

Answer:

Bro my bal. sheet is not matching... please explain if you got

Answer 2

24,000, 40,000 respectively

Explanation:

Here are the working Notes required to fill into the journal:

Old ratio of Ashok : Bhaskar : chaman

$1/3:1/2:1/6=1/3×2/2:1/2×3/3=1/6=2/6:3/6:1/6=2:3:1$

New ratio of Ashok and Bhaskar$= 3:2$

Gaining ratio= New ratio – old ratio

Ashok $= 3/5-2/6=18-10/30=8/30$

Bhaskar $= 2/5-3/6=12-15/30= -3/30$

Goodwill of firm $= 2,40,000$

Bhaskar must get$=2,40,000×3/30=24,000$

Chaman’s share of good-will $= 2,40,000×1/6=40,000$

Ashok must pay Bhaskar and Chaman 24,000, 40,000 respectively.