Balance Sheet of Madhu and Vidhi who are sharing profits

61 :- Balance Sheet of Madhu and Vidhi who are sharing profits in the ratio of 2 : 3 as at 31st March, 2016 is given below:

Madhu and Vidhi decided to admit Gayatri as a new partner from 1st April, 2016 and their new profit sharing ratio will be 2 : 3 : 5. Gayatri brought Rs 4,00,000 as her capital and her share of goodwill premium in cash.
(a) Goodwill of the firm was valued at Rs 3,00,000.
(b) Land and Building was found undervalued by Rs 26,000.
(c) Provision for doubtful debts was to be made equal to 5% of the debtors.
(d) There was a claim of Rs 60,000 on account of workmen compensation.
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the reconstituted firm.

Solution :–

WORKING NOTES :-
(a) Calcualtion of Sacrificing/gaining share
Madhu = 2/5 – 2/10 = 2/10
Vidhi = 3/5 – 3/10 = 3/10
Sacrifiicng ratio is 2:3

(b) Calculation of share of goodwill
Gayatri’s share of goodwill = 3,00,000 x 5/10 = Rs 1,50,000
Madhu’s share of goodwill = 1,50,000 x 2/5 = Rs 60,000
Vidhi’s share of goodwill = 1,50,000 x 3/5 = Rs 90,000