74 :- Raman and Rohit were partners in a firm sharing profits and losses in the ratio of 2:1. On 31st March, 2018, their balance sheet was as follows:
On the above date, Saloni was admitted in the partnership firm. Raman surrendered 2/5th of his share and Rohit surrendered 1/5th of his share in favour of Saloni. It was agreed that;
(i) Plant and machinery will be reduced by Rs 35,000 and furniture and fixtures will be reduced to Rs 58,500
(ii) Provision for bad and doubtful debts will be increased by Rs 3,000
(iii) A claim for Rs 16,000 for workmen’s compensation was admitted.
(iv) A liability of Rs 2,500 included in creditors is not likely to arise.
(v) Saloni will bring Rs 42,000 as her share of goodwill premium and proportionate capital.
Prepare Revaluation account, Partners Capital Accounts and Balance Sheet of the reconstituted firm.
Solution :-
WORKING NOTES
(a) Calculation of sacrificing share
Raman = 2/3 x 2/5 = 4/15
Rohit = 1/3 x 1/5 = 1/15
Sacrificing share is 4:1
(b) Calculation of Saloni’s capital
Total capital of the firm = Reciprocal of their combined share capital x their total capital
On the basis of Raman’s = 3/2 x (1,61,600 + 1,02,400)
And Rohan’s capital = Rs 3,96,000
Saloni’s capital = 1/3 x 3,96,000
= Rs 1,32,000