Question

The Balance Sheet of X, Y and Z who shared profits in the ratio of 5 : 3 : 2 as on 31st March, 2018 was as follows:
Y retired on the above date and it was agreed that:
(i) Goodwill of the firm is valued at ₹ 1,12,500 and Y’s share of it be adjusted into the accounts of X and Z who are going to share future profits in the ratio of 3 : 2.
(ii) Fixed Assets be appreciated by 20%.
(iii) Stock be reduced to ₹ 75,000.
(iv) Y be paid amount brought in by X and Z in such a way as to make their capitals proportionate to their new profit-sharing ratio.
Prepare Revaluation Account, Capital Accounts of all partners and the Balance Sheet of the New Firm.

Answer 1

X brings in Rs 40,500 (2,20,500 – 1,80,000)

Z brings in Rs 93,000 (1,47,500 – 54,000)

Explanation:

New Capital = 1,80,000 + 54,000 + 1,33,500 = Rs 3,67,500

X's New Capital=3,67,500×$\frac{3}{5}$=2,20,500

Z's New Capital=3,67,500×$\frac{2}{5}$=1,47,500

X brings in Rs 40,500 (2,20,500 – 1,80,000)

Z brings in Rs 93,000 (1,47,500 – 54,000)