65 :- Divya, Yasmin and Fatima are partners in a firm, sharing profits and losses in the ratio of 11:7:2 respectively. The balance sheet of the firm on 31st March, 2018, was as follows

On 1st April, 2018, Aditya is admitted as a partner for one-fifth share in the profits with a capital of Rs 4,50,000 and necessary amount for his share of goodwill on the following terms
(a) Furniture of Rs 2,40,000 were to be taken over Divya, Yasmin and Fatima equally.
(b) A creditor of Rs 7,000 not recorded in books to be taken into account.
(c) Goodwill of the firm is to be valued at 2.5 years purchase of average profits of last two years. The profits of the last three years were
2015-16 – Rs 6,00,000; 2016-17 – Rs 2,00,000; 2017-18 – Rs 6,00,000
(d) At time of Aditya’s admission. Yasmin also brought in Rs 50,000 as fresh capital.
(e) Plant and machinery is re-valued to Rs 2,00,000 and expenses outstanding were brought down to Rs 9,000
Prepare revaluation account, Partner’s capital accounts and the balance sheet of the reconstituted firm.

Solution :-

WORKING NOTES :-
Calculation of goodwill
Goodwill = 6,00,000 + 2,00,000/2 x 2.5
               = Rs 10,00,000
Aditya’s share of goodwill = 10,00,000 x 1/5 = Rs 2,00,000