76 :- Leena and Rohit are partners in a firm sharing profits in the ratio of 3:2. On 31ST march 2018, their Balance sheet was as follows
On the above date Manoj was admitted as a new partner for 1/5th share in the profits of the firm on the following terms
(i) Manoj brought proportionate capital. He also brought his share of goodwill premium of Rs 80,000 in cash
(ii) 10% of the general reserve was to be transferred to provision for doubtful debts
(iii) Claim on account of workmen compensation amounted to Rs 40,000
(iv) Stock was overvalued by Rs 16,000
(v) Leena, Rohit and Manoj will share future profits in the ratio of 5:3:2.
Prepare revaluation account, partners capital accounts and the balance sheet of the reconstituted firm.
Solution :-
WORKING NOTES :-
(a) Calculation of sacrificing/gaining share
Old ratio – new ratio
Leena : 3/5 – 5/10 = 1/10 (sacrifice)
Rohit : 2/5 – 3/10 = 1/10 (sacrifice)
Manoj : 2/10
Sacrificing ratio = 1:1
(b) Calculation of Manoj’s capital
Total capital of the firm on the basis of Leena’s and Rohit’s capital = reciprocal of their x total of their adjusted
combined share capital
= 5/4 x (1,93,400 + 1,75,600)
= Rs 4,61,250
Manoj’s proportionate capital = Total capital of the firm x his share
= 4,61,250 x 1/5
= Rs 92,250