54 :- Suraj, Pawan and Kamal are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their balance sheet as at 31st March 2025 is :
Pawan retired on 1st April 2025 on the following terms
(a) Provision for doubtful debts be raised by Rs 1,000.
(b) Stock to be reduced by 10% and furniture by 5%
(c) There is an outstanding claim of damages of Rs 1,100 and it is to be provided for
(d) Creditors will be written back by Rs 6,000
(e) Goodwill of the firm is valued at Rs 22,000.
(f) Pawan is paid in full with the cash brought in by Suraj and Kamal in such a manner that their capitals are in proportion to their profit-sharing ratio and cash in hand remains at Rs 10,000.
Prepare Revaluation account, Partner’s capital accounts and the Balance sheet of Suraj and Kamal.
Solution :-
WORKING NOTES :–
(a) Calculation of partner’s share in goodwill
Goodwill of the firm = Rs 22,000
Gaining ratio of 3:1
B’s share in goodwill = 22,000 x 2/6 = Rs 7,333
A will contribute = 7,333 x 3/4 = Rs 5,500
C will contribute = 7,333 x 1/4 = Rs 1,833
(b) Calculation of partner’s capital in new firm
Total capital in new firm = Adjusted capital of A, B and C – (18,000 – 10,000)
= 35,800 + 48,200 + 28,600 – 8,000
= Rs 1,04,600
A’s capital in new firm = 1,04,600 x 3/4 = Rs 78,450
B’s capital in new firm = 1,04,600 x 1/4 = Rs 26,150