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Chapter 5 Admission of a Partner 5.17
.
Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Anil Sunil Charan Particulars Anil Sunil Charan
` ` ` ` ` `
To Bank A/c (Withdrawal) 7,600 18,400 ... By Balance b/d 32,600 40,400 ...
(Balancing Figure) By Workmen Comp.
To Balance c/d (WN 4) 40,000 30,000 30,000 Reserve A/c 1,200 800 ...
By Investments
Fluctuation
Reserve A/c 300 200 ...
By Revaluation A/c (Gain) 1,500 1,000 ...
By Bank A/c ... ... 30,000
By Charan’s Current A/c 4,800 2,400 ...
By Premium for
Goodwill A/c 7,200 3,600 ...
47,600 48,400 30,000 47,600 48,400 30,000

BALANCE SHEET (After Charan’s Admission) as at 1st April, 2018
Liabilities ` Assets `
Capital A/cs: Land and Building 16,000
Anil 40,000 Investments 4,500
Sunil 30,000 Debtors 30,000
Charan 30,000 1,00,000 Less: Provision for Doubtful Debts 1,500 28,500
Employees’ Provident Fund 1,000 Stock 3,000
Bank (WN 5) 41,800
Charan’s Current A/c 7,200
1,01,000 1,01,000

Working Notes:
1. Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `

To Stock A/c 7,000 By Land and Building A/c 10,000
To Provision for Doubtful Debts A/c 500
To Gain (Profit) on Revaluation:
Anil’s Capital A/c 1,500
Sunil’s Capital A/c 1,000 2,500
10,000 10,000

2. Calculation of Sacrificing Ratio: Anil Sunil
Existing Ratio 3 : 2
3 1 1 1
Anil’s Sacrifice = ¥ = ; Sunil’s Sacrifice =
5 3 5 10
11
Hence, Sacrificing Ratio = : = 2 :1
5 10
Premium for Goodwill of ` 18,000 shall be distributed between Anil and Sunil in the Sacrificing Ratio,
i.e., 2 : 1
2 1
Anil’s Share = `18,000 ¥ = `12,000 ; Sunil’s Share = `18,000 ¥ = ` 6,000.
3 3