Question

Deepika and Rajshree are partners in a firm sharing profits and losses in the ratio of 3 : 2 . On 31st March,2018 their Balance Sheet was:
On the above date, the partners decided to admit Anshu as a partner on the following terms:
(a) The new profit-sharing ratio of Deepika, Rajshree and Anshu will be 5 : 3 : 2 respectively.
(b) Anshu shall bring in ₹ 32,000 as his capital.
(c) Anshu is unable to bring in any cash for his share of goodwill. Partners therefore, decide to calculate the goodwill on the basis of Anshu’s share in the profits and the capital contribution made by her to the firm.
(d) Plant and Machinery is to be valued at ₹ 60,000, Stock at ₹ 40,000 and the Provision for Doubtful Debts is to be maintained at ₹ 4,000. Value of Land and Building has appreciated by 20%. Furniture has been depreciated by 10%.
(e) There is and additional liability of ₹ 8,000 being outstanding salary payable to employees of the firm. This liability is not included in the outstanding liabilities, stated in the above Balance Sheet. Partners decide to show this liability in the books of account of the reconstituted firm.
Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet of Deepika, Rajshree and Anshu.

Answer 1

The Revaluation Account, Partners Capital Accounts and Balance Sheet of Deepika, Rajshree and Anshu are prepared below

Explanation:

Given,

Deepika and Rajshree are partners in a firm sharing profits and losses in the ratio of 3 : 2 .

Calculation of Sacrificing Ratio:

Old Ratio (Deepika and Rajshree) =3: 2

New Ratio (Deepika, Rajshree and Anshu)= 5: 3: 2

Sacrificing Ratio = Old Ratio- New Ratio

Deepika's

$=\frac{3}{5}-\frac{5}{10}=\frac{6-5}{10}=\frac{1}{10}$

Rajshree's

$=\frac{2}{5}-\frac{3}{10}=\frac{4-3}{10}=\frac{1}{10}$

Sacrificing Ratio (Deepika and Rajshree) =1: 1

Capitalised value on the basis of Anshu's Share

$=32,000 \times \frac{10}{2}=1,60,000$

Actual Capital of partners before adjustment of goodwill

$=58,680+47,120+32,000= 1,37,800$

Goodwill = capitalised value- -Actual capital of al partners before adjustment of Goodwill

$=1,60,000-1,37,800=22,200$

Anshu's Share of Goodwill

$=22,200 \times \frac{2}{10}=4,440$

Deepika and Rajshree each will entitle for Goodwill

$=4,440 \times \frac{1}{2}=2,220$