Q67 (a) plz give answer today plz plzplzzzzz

Q67 (a) plz give answer today plz plzplzzzzz Adiusttnent of Capital Accounts partner •s Capital not kiven O. Nem and Khem sharing profits in the ratio of 3 2 admit prem as a with 1/3 share in profits. He had to contribute proportionate capital. 'Ihey had following financial position 40,000 50,000 Debtors 50. OCH) Plant and Machinery agreed to admit Prem as a partner on the following terms (I) Plant and Machinery to be reduced by 10%. (2) Stockto be increased by e 3,000. (3) Bad debts provision was to be created at (4) Accrued incomes not appearing in the books WOO. s .000 60.000 35,000 1,80.ooo (5) Prem was to introduce t 20.000 as 'Temium for goodwill for 1/3rd share of the future profits of the firm, prepare profit and Loss Adjustment Account, Capital Accounts and Balance Sheet ofthe new firm. Also calculate new profit sharing ratio. Loss on Revaluation e 7,100; Capital Accounts : Nem Khem t6S.160 and Prem 06.450; Bank Balance C I and Balance Sheet Total 269,350. New profit sharing ratio 6 : 4 : Sl Hint : Calculation Of prem•s Capital : Capital of Nem and for — Of profits = 87,740 65, 160 = I the total Capital of the new fim will = x Prcm's Capital rd — 2.29,3SO x 76.450 - 0.29,350

Dear Student


 
Revaluation A/c
Particulars Amount Particulars Amount
Plant and Machinery 8,000 Stock 3,000
Provision for Bad Debt 3,000 Accrued Income 900
       
    Revaluation loss Transferred to 
    Nem (7,100 x 3/5) 4,260
    Khem (7,100 x 2/5) 2,840
       
  11,000   11,000


 
Partners Capital A/c
Particulars  Nem's Capital A/c Khem's Capital A/c Prem's Capital A/c Particulars  Nem's Capital A/c Khem's Capital A/c Prem's Capital A/c
        Bal B/d 50,000 40,000  
        Cash A/c     76,450
Revaluation A/c 4,260 2,840   Premium for Goodwill 12,000 8,000  
        Reserve Fund 30,000 20,000  
               
Bal C/d 87,740 65,160 76,450        
               
  92,000 68,000 76,450   92,000 68,000 76,450

Balancesheet
Liabilities Amount Assets Amount  
      Plant and Machinery 72,000
Sundry Creditors 40,000 Stock   38,000
      Plant and Machinery
Capital account :   Sundry Debtors 60,000  
      Less : Provision for Bad Debt (3,000) 57,000
Nem 87,740   Accrued Income 900
Khem 65,160   Cash at bank 101,450
Prem 76,450 229,350      
           
           
    269,350     269,350

Working for Goodwill
     
Prem's Share of Goodwill 20000
Sacrificing Ratio given 3:2
Goodwill adjusted  
Nem's Capital A/c (20,000 x 3/5) 12000
Khem's Capital A/c (20,000 x 2/5) 8000


 
Working for capital  
Combined Capital of Nem and Khem (87,740 + 65,160) 152900
Combined Share of Nem and Khem 3:2
Based on Above total capital of Firm (1,52,900 x 3/2) 229350
Capital of Prem (2,29,350 x 1/3) 76450


Calculation of New ratio

Old ratio between Nem and Khem = 3:2.
Share of Prem = 1/3 or 5/15
Remaining share = 2/3.
New share of Nem = 23×35=615
New share of khem = 23×25=415

Therefore new ratio is 6:4:5.



Regards

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