71 :- Gautam and Yashica are partners in a firm, sharing profits and losses in 3:1 respectively. The balance sheet of the firm as on 31st March, 2018 was as follows
Asma is admitted as a partner for 3/8th share of profits with a capital of Rs 2,10,000 and Rs 50,000 for her share of goodwill. It was decided that:
(i) New profit-sharing ratio will be 3:2:3.
(ii) Machinery will be depreciated by 10% and furniture by Rs 5,000.
(iii) Stock was revalued at Rs 2,10,000.
(iv) Provisions for doubtful debts is to be created at 10% of debtors.
(v) The capitals of all the partners were to be in the new profit-sharing ratio on basis of capital of new partner. Any adjustment to be done through current accounts.
Prepare Revaluation account, Partner’s Capital Accounts and the Balance Sheet of the new firm.
Solution :-
WORKING NOTES :-
(i) Calculation of sacrificing/gaining share
Gautam = 3/4 – 3/8 = 3/8
Yashica = 1/4 – 2/8 = 0 (no change)
Only Gautam sacrifices
(ii) Adjustment of capitals
Total capirtal of the firm as per Asma’s capital = 2,10,000 x 8/3 = Rs 5,60,000
Gautam’s new capital = 5,60,000 x 3/8 = Rs 2,10,000
Yashica’s new capital = 5,60,000 x 2/8 = Rs 1,40,000