Question

Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3 . On 1st April, 2016 , their Balance Sheet was as follows:
From the above date, the partners decided to share the future profits equally. For this purpose the goodwill of the firm was valued at ₹ 90,000. It was also agreed that:
(a) Claim against Workmen Compensation Reserve will be estimated at ₹ 1,00,000 and fixed assets will be depreciated by 10%.
(b) The Capitals of the partners will be adjusted according to the new profit-sharing ratio. For this, necessary cash will be brought or paid by the partners as the case may be.
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm.

Answer 1

Total Companied Capital = 6,15,000

Suresh's New Capital  = 1,53,750

Ramesh's New Capital  = 1,53,750

Mahesh's New Capital  = 1,53,750

Ganesh's New Capital   = 1,53,750

Explanation:

Calculation of adjusted capital

Suresh = 1,00,000 - 21,500 = 78,500

Ramesh = 1,50,000 - 21,500 =  1,28,500

Mahesh = 2,04,500 - 25,500 =1,79,000

Ganesh = 2,54,500 - 25,500 =2,29,000

Total Companied Capital = 6,15,000

Calculation of New Capital

Suresh =  6,15,000×$\frac{1}{4}$ = 1,53,750

Ramesh =  6,15,000×$\frac{1}{4}$  = 1,53,750

Mahesh =  6,15,000×$\frac{1}{4}$  = 1,53,750

Ganesh =  6,15,000×$\frac{1}{4}$  = 1,53,750