Ankita and Nikita were partners in a firm sharing profits in the ratio 2:3. their fixed capitals were Rs.250000 and Rs.450000 respectively after the final accounts of the year had been closed, it was found that interest on capital at 10% per annum as provided in the partnership agreement has not been credited to the capital accounts of the partners. give necessary adjustment entry.
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Q1:
Atul and Neera were partners in a firm sharing profits in the ratio of 3 : 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ₹ 2,00,000. Mitali brings her share of goodwill premium of ₹ 20,000 in cash, which is entirely credited to Atul's Capital Account. Calculate the new profit sharing ratio.
Solution:
Revalued Goodwill of the firm on Mitali’s admission = ₹ 2,00,000
Premium for Goodwill brought in cash by Mitali = ₹20,000
So, Mitali’s share in future profit of the firm = 20,0002,00,000=110
Atul’s Account has only been credited by the premium brought in by Mitali
So, Atul’s Sacrificing Share = Profit Share of Mitali =110
New Profit Share of Atul = Old Profit Share – Sacrificing Share
New Profit Share of Atul=35–110=510
Hence,
Atul
Neera
Mitali
New Profit Sharing Ratio
510
25
110
OR
510
410
110
OR
5
:
4
:
1