Anil, Sunil & Ramesh are partners sharing profits & losses in the ratio of 5:3:2. Their
Balance Sheet as on March 31, 2015 was as follows ?
Liabilities Rs. Assets Rs.
Creditors
Bills Payables
Workmen Comp. Reserve
Capital Accounts ?
- Anil 60,000
- Sunil 60,000
- Ramesh 30,000
60,000
65,000
25,000
1,50,000
Cash-at-Bank
Debtors
Stock
Furniture
Buildings
Advertisement Suspense
20,000
45,000
75,000
35,000
1,00,000
25,000
3,00,000 3,00,000
On April 1, 2015, they decided to share future profits & losses in the ratio of 3:2:1 &
following adjustments were agreed upon ?
a) Furniture to be decreased by Rs. 3,500.
b) Building is to be appreciated by 25%.
c) A provision for bad debts is to be maintained for Rs. 6,000 on debtors.
d) Goodwill of the firm is to be valued at Rs. 90,000.
Prepare Revaluation Account, Partners? Capital Account & Balance Sheet
Dear Student,
Working Note:
Sunil will pay to Ramesh = 90,000×1/30
= ₹3,000
Regards
| Revaluation Account | |||||
| Dr | Cr | ||||
| Particulars | Amount ₹ |
Particulars | Amount ₹ |
||
| To Furniture | 3,500 | By Buildings (1,00,000×0.25) | 25,000 | ||
| To Provision for doubtful debts | 6,000 | ||||
| To Profit t/d to Capital A/cs of: | |||||
| Anil 7,750 | |||||
| Sunil 4,650 | |||||
| Ramesh 3,100 | 15,500 | ||||
| 25,000 | 25,000 | ||||
| Partners’ Capital Accounts | |||||||||
| Dr | Cr | ||||||||
| Particulars | Anil ₹ |
Sunil ₹ |
Ramesh ₹ |
Particulars | Anil ₹ |
Sunil ₹ |
Ramesh ₹ |
||
| To Advertisement Suspense A/c | 12,500 |
7,500 |
5,000 |
By Balance b/d By Profit on Revaluation A/c |
60,000 7,750 |
60,000 4,650 |
30,000 3,100 |
||
| To Ramesh's Capital A/c | 3,000 | By WCR A/c By Sunil's |
12,500 | 7,500 | 5,000 3,000 |
||||
| To Balance c/d | 67,750 | 61,650 | 36,100 |
Capital A/c | |||||
| 80,250 | 72,150 | 41,100 | 80,250 | 72,150 | 41,100 | ||||
| Balance Sheet | |||
| As on 31st March 2015 | |||
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
| Creditors | 60,000 | Cash at Bank | 20,000 |
| Bills Payables | 65,000 | Stock | 75,000 |
| Capital Accounts: | Debtors 45,000 | ||
| Anil 67,750 | Less:Provision 6,000 | 39,000 | |
| Sunil 61,650 | Furniture 35,000 | ||
| Ramesh 36,100 | 1,65,500 | Less: Depreciation 3,500 | 31,500 |
| Buildings 1,00,000 | |||
| Add: Appreciation 25,000 | 1,25,000 | ||
| 2,90,500 | 2,90,500 | ||
Working Note:
Computation of amount to be compensated to the sacrificing partner(s) on the basis of revalued goodwill:
Revalued Goodwill = ₹90,000
Revalued Goodwill = ₹90,000
| Anil | Sunil | Ramesh | |
| (i) Old Share | 5/10 | 3/10 | 2/10 |
| (ii) New Share | 3/6 | 2/6 | 1/6 |
| (i)–(ii) Sacrifice/(Gain) | Nil |
–1/30 |
1/30 |
| Gain | Sacrifice | ||
| Dr | Cr |
Sunil will pay to Ramesh = 90,000×1/30
= ₹3,000
Regards