Question

Aman, Bobby and Chandani were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. From 1st April, 2018 they decided to share profits equally. The revaluation of assets and re-assessment of liabilities resulted in a loss of ₹ 5,000.​

Answer 1

Aman’s Capital A/c Dr.                             2,500

Bobby’s Capital A/c Dr.                            2,000

Chandani’s Capital A/c Dr.                          500

To Revaluation A/c                                                   5,000

(Being loss on revaluation transferred to partner’s capital in old

ratio)

Explanation:

As per the Accounting standards or guidelines When ever the assets are revalued for the reconstitution of the firm the revalued assets are distributed amongst partners in their old profit sharing Ratios

Working Note:

Aman : $\frac{5}{10\\}$ x 5,000 = Rs. 2,500

Bobby : $\frac{4}{10}$ x 5,000 = Rs. 2,000

Chandani : $\frac{1}{10}$ x 5,000 = Rs. 500