72 :- Ishu and Vishu are partners sharing profits in the ratio of 3:2. Their balance sheet as at 31st March, 2025 was as follows
Nishu was admitted on that date for 1/6 share in the profits on the following terms:
(a) Nishu will bring Rs 56,000 as his share of capital.
(b) Goodwill of the firm is valued at Rs 84,000 and Nishu will bring his share of goodwill in cash.
(c) Plant and machinery be appreciated by 20%.
(d) All debtors are good.
(e) There is a liability of Rs 9,800 included in sundry creditors that is not likely to arise.
(f) Capitals of Ishu and Vishu will be adjusted on the basis of Nishu’s capital and any excess or deficiency will be made by withdrawing or bringing in cash by the concerned partner.
Prepare the revaluation account, Partners capital Accounts and the balance sheet of the new firm.
Solution :-
WORKING NOTES :-
(i) Calculation of premium for goodwill
Nishu’s share = 84,000 x 1/6 = Rs 14,000
Their Scarificing ratio is 3:2
Ishu’s share = 14,000 x 3/5 = Rs 8,400
Vishu’s share = 14,000 x 2/5 = Rs 5,600
(ii) Calculation of new profit sharing ratio
Ishu’s new share = 3/5 – 3/30 = 15/30
Vishu’s new share = 2/5 – 2/30 = 10/30
Nishu’s share = 1/6 x 5/5 = 5/30
New profit sharing ratio is 3:2:1
(iii) Adjustments of capital
Total capital of the firm acc to Nishu’s capital = 56,000 x 6 = Rs 3,36,000
Ishu’s new capital = 3,36,000 x 3/6 = Rs 1,68,000
Vishu’s capital = 3,36,000 x 2/6 = Rs 1,12,000