51 :- Balance sheet of X, Y and Z who shared profits in the ratio of 5:3:2, as on 31st March 2025 was as follows
Y retired on 1st April 2025 and it was agreed that
(a) Goodwill of the firm is valued at Rs 1,12,500 and Y’s share of it be adjusted into the capital accounts of X and Z who are going to share future profits in the ratio of 3:2.
(b) Fixed assets to be appreciated by 20%.
(c) Stock be reduced to Rs 75,000
(d) Y be paid amount brought by X and Z so as to make their capitals proportionate to their new profit sharing ratio
Prepare revaluation account, capitals accounts of all partners and the balance sheet of the new firm.
Solution :-
WORKING NOTES :-
(i) Calculation of gaining ratio
New ratio – old ratio
X = 3/5 – 5/10 = 1/10
Z = 2/5 – 2/10 = 2/10
Gaining ratio = 1:2
(ii) Calculation of share of goodwill
Y’s share of goodwill = 1,12,500 x 3/10 = Rs 33,750
X’s share = 33,750 x 1/3 = Rs 11,250
Z’s share = 33,750 x 2/3 = Rs 22,500
(iii) Calculation of their new capitals
Total capital of the firm = 1,80,000 + 1,33,500 + 54,000
= Rs 3,67,500
Their new capital will be in the ratio of 3:2
X’s new capital = 3,67,500 x 3/5 = Rs 2,20,500
Z’s new capital = 3,67,500 x 2/5 = Rs 1,47,000