Q.03 Aditi and Anita are partners in a firm sharing P&L equally. Their balance sheet on 31-3-2012 was as follows:They agreed to admit Ashwini as a new partner on 1/4/2012on the following terms:1. She shall have ¼ share in the profit.2. She shall bring 8000 as her capital.3. She shall bring 4000 as her goodwill.4. Motor van is to be depreciated by 10% and stock is revalued at 7000.5. Plant and machinery is to be appreciated by 20%.6. An amount of 1200included in creditors is no longer a liability and hence required to be properly adjusted.Prepare Necessary Ledger Account Liabilities Rs Assets RsCapital a\c:AditiAnita General reserve
Answers
Following is the calculation for revaluation at time of Ashwini's admission:
Given, Aditi and Anita's profit sharing ratio is equal.
On, 1/4/2012 Ashwini is admitted as new partner on following terms :-
1) 1/4th share of profit
2) ₹8000 as capital
3) ₹4000 as goodwill, this goodwill will be credited to Aditi and Anita's capital account equally, i.e. ₹2000 each.
now, assets and liabilities to be revalued are :-
1) motor van to be depreciated by 10% = 5,00,000 - 10 % of 5,00,000
= 4,50,000
it will come in debit side of revaluation account.
2) stock is revalued at 7000. it will come in debit side of revaluation account as its value decreased from 10,000 to 7000.
3) plant and machinery to be appreciated by 20% = 2,55,000 + 20% of 2,55,000 = 2,04,000. it will come in credit side of revaluation account.
4) ₹1,200 in creditors is no longer a liability. it will come in credit side of revaluation account.
so, loss on revaluation = (50,000 + 3,000 ) - ( 51,000 + 1,200 ) = ₹800, divided between Aditi and Anita equally, i.e. ₹400 each.