Question

70. Divya, Yasmin and Fatima are partners in a firm, sharing profits and losses in 11:7: 2 respectively. The
Balance Sheet of the firm on 31st March, 2018 was as follows:
BALANCE SHEET as at 31st March, 2018
Liabilities
₹ F Assets
₹
Sundry Creditors
70,000 Factory Building
7,35,000
Public Deposits
1,19,000 Plant and Machinery
1,80,000
Reserve Fund
90,000 Furniture
2,60,000
Outstanding Expenses
10,000 Stock
1,45,000
Capital A/cs:
Debtors
1,50,000
Divya
5,10,000
Less: Provision
(30,000) 1,20,000
Yasmin
3,00,000
Cash at Bank
1,59,000
Fatima
5,00,000 13,10,000
15,99,000
15,99,000​

Answer 1

Prepare Revaluation Account, Partners Capital Balance Sheet of the reconstituted firm

Explanation:

Working Notes-

1. Calculation of New Profit sharing ratio:

Old Ratio = 11 : 7 : 2

Aditya's Share = $\frac{1}{5}$

Let the Profit be 1

Remaining Profit = 1 - $\frac{1}{5}$ = $\frac{4}{5}$

Divya's New Ratio = $\frac{11}{20}$ × $\frac{4}{5}$ = $\frac{44}{100}$

Yasmin's New Ratio = $\frac{7}{20}$ × $\frac{4}{5}$ = $\frac{28}{100}$

Fatima's New Ratio = $\frac{2}{20}$ × $\frac{4}{5}$ = $\frac{8}{100}$

New Profit Sharing Ratio =  $\frac{44}{100}$ : $\frac{28}{100}$ : $\frac{8}{100}$ : $\frac{20}{100}$ or 11 : 14 : 2 : 5

2. Calculation of Goodwill:

  Average Profit = $\frac{2,00,000 + 6,00,000}{2}$

                            = Rs. 4,00,000

goodwill of the firm = 4,00,000 x 2.5 years

                                 = Rs. 10,00,000

Aditya's Share of Goodwill = 10,00,000 x $\frac{1}{5}$

                                            = Rs. 2,00,000

Pls refer pic attached pic below