47 :- Amit, Balan and Chander were partners in a firm sharing profits in the proportion of 1/2, 1/3 and 1/6 respectively. Chander retired on 1st April 2014. The balance sheet of the firm on the date of Chander’s retirement was as follows :
It was agreed that :
(i) Goodwill will be valued at Rs 27,000
(ii) Depreciation of 10% was to be provided on machinery
(iii) Patents were to be reduced by 20%
(iv) An old photocopier previously written off was sold for Rs 600
(v) Chander took over installments for Rs 15,800
(vi) Amit and Balan decided to adjust their capitals in proportion of their profit-sharing ratio by opening current accounts.
Prepare Revaluation account and Partner’s Capital accounts on Chander’s retirement.
Solution :-
WORKING NOTES :-
(i) Calculation of Partner’s capital in new firm
Total capital of new firm = 42,100 + 37,900
= Rs 80,000
Amit’s capital in new firm = 80,000 x 3/5 = Rs 48,000
Balan’s capital in new firm = 80,000 x 2/5 = Rs 32,000
(ii) Calculation of partner’s share in goodwill
Goodwill of the firm = Rs 27,000
Chander’s share in goodwill = 27,000 x 1/6 = Rs 4,500
Amit and Balan would contribute in their gaining ratio I.e, 3:2
Amit’s contribute = 4,500 x 3/5 = Rs 2,700
Balan’s contribute = 4,500 x 2/5 = Rs 1,800