Question

162
3.
163
ratio of 5 : 6:5. This results in A losing 36 is
and C gaining 16 i
and 216
5
16
share in profits while B
4.
5.
6
16
5
16
5
16 (16
3
16
In such a situation, first of
Solution
Books of Dinesh, Ramesh and Suresh
Journal
2015
Apr 01
51,000
51,000
and then writing it off in the new ratio (Alternatively, losing partners can be
credited and gaining partners debited vith appropriate amounts without
goodwill account appearing in the books, as explained earlier in the context of
the admission of a new partners
Any change, in the profit sharing ratio, like admission of partner, may also
involve adjustments in respect of revaluation of assets and liabilities, transfer of
accumulated profit and losses to partners' capital accounts in the old profit
sharing ratio and adjustment of partners' capitals, if specified, so as to make
them proportionate to the new profit sharing ratio. All this is done in the same
way as in case of admission of a partner.
11,000
8,000
3,000
Illustration 30
40.000
Fixed Assets A/C
To Revaluation A/C
Dr.
(Increase in value of fixed assets)
Revaluation A/C
To Stock A/c
Dr
To Provisions for
Doubtful debts A/C
(Decrease in value of stock and creation
of provision for doubtful debts)
Revaluation A/c
Dr.
To Dinesh's Capital A/C
To Ramesh's Capital A/C
To Suresh's Capital A/c
(Profit on revaluation transferred to partners
capital accounts in old profit sharing ratio)
General Reserve A/c
Dr.
To Dinesh's Capital A/c
To Ramesh's Capital A/C
To Suresh's Capital A/c
(General reserve, transferred to partners
capital accounts in old ratio)
Suresh's Capital A/C
Dr.
To Dinesh's Capital A/c
To Ramesh's Capital A/C
(Goodwill adjusted in partner's capital
accounts in their sacrificing/gaining ratio)
15.000
15,000
10.000
Dinesh, Ramesh and Suresh are partners in a firm sharing profits and losses
in the ratio of 3:3:2. They decided to share the profits equally w.e.f. April 1,
2015. Their Balance Sheet as on March 31, 2005 was as follows:
Liabilities
L'I'I
80,000
Assets
Amount
Rs.
Amounts
Rs
30,000
30,000
20,000
1.50.000
80.000
Cash at Bank
Bills Receivable
40,000
50.000
Sundry Debtors 600+*5% 3 o 60,000
7,500
Sundry Creditors V
General Reserve
Partner's Loan:
Dinesh
40.000
Ramesh
30.000
Partners Capital :
Dinesh
1,00,000
Ramesh
80.000
Suresh
70.000
Stock
Fixed Assets
70.000
1.20,000
2,80,000
3,750
3,750
2.50.000
5,50,000
5,50,000
Working Notes:
1. Gain or sacrifice of partners
Dinesh
Old Share
3/8
New Share
1/3
Difference
1/24
(sacrifice)
It was also decide that :
1. The fixed assets should be valued at Rs. 3.31.000.451000
2.
A provisions of 5% on sundry debtors be made doubtful debts.
Ramesh
3/8
1/3
1/24
(sacrifice)
Suresh
2/8
1/3
2/24
(gain)
Accountancy-Not-for Profit Organisation and Partnership Accounts
actively participate in the affairs of the firm. Hence, with effect from
The goodwill of the firm at this date be valued at 4%2 years purchase of the
average net profits of last, five years which were Rs. 14,000: Rs. 17,000;
Rs. 20.000, Rs. 22.000 and Rs. 27.000 respectively
The value of stock be reduced to Rs. 1,12,000.
Goodwill was not to appear in the books. Pass the necessary journal entries
and prepare the revised Balance sheet of the firm.
all, the loss and gain in the value of goodwill (if any) will have to be adjusted
This is done by raising goodwill at its full value in the MD profit sharing ratio
Admission of a Partner
April 1, 2007, they decided that, in future they will share the profits in the​

Answer 1

Answer:

Mark Me As Brainist Then I Will Ans