Deepika and Rajshree are partners in a firm sharing profits and losses

67 :- Deepika, and Rajshree are partners in a firm sharing profits and losses in the ratio of 3:2. On 31^st March, 2025 their balance sheet was

On 1st April 2025, the partners admit Anshu as a partner on the following terms;
(a) New profit sharing ratio of Deepika, Rajshree and Anshu will be 5:3:2
(b) Anshu shall bring in Rs 32,000 as his capital.
(c) Anshu is unable to bring his share of goodwill. Partners, therefore, decide to calculate the goodwill on the basis of Anshu’s share in the profits and the capital contribution made by her to the firm.
(d) Plant and machinery is to be valued at Rs 60,000. Stock at Rs 40,000 and the provisions for doubtful debts is to be maintained at Rs 4,000. Value of land and building has appreciated by 20%. Furniture has been depreciated by 10%.
(e) There is an additional liability of Rs 8,000 being outstanding salary payable to employees of the firm. This liability is not included in the outstanding liabilities, stated in the above balance sheet. Partners decide to show this liability in the books of accounts of the reconstituted firm.
Prepare revaluation account, partners capital account and the balance sheet of Deepika, Rajshree and Anshu.

Solution :-

WORKING NOTES
(a) Calculation of sacrificing/gaining share
Deepika = 3/5 – 5/10 = 1/10
Rajshree = 2/5 — 3/10 = 1/10
Sacrificing ratio = 1:1

(b) Calculation of hidden goodwill
Capital of the firm on the basis of Anshu’s share = 32,000 x 10/2
= Rs 1,60,000
Total capital of the firm is (58,680 + 47,120 + 32,000) = Rs 1,37,800
Hidden goodwill of the firm = capital on the basis of Anshu’s share – total capital of the firm
= 1,60,000 – 1,37,800
= Rs 22,200

(c) Calculation of premium for goodwill
Anshu’s share of goodwill = 22,200 x 2/10 = Rs 4,440
Deepika’s share of goodwill = 22,200 x 1/10 = Rs 2,220
Rajshree’s share off goodwill = 22,200 x 1/10 = Rs 2,220