Page 102 - DEBKVOL-1

5.18 Double Entry Book Keeping—CBSE XII

3. Calculation of New Profit-sharing Ratio:
3 1 1 1
Share acquired by Charan: From Anil = ¥ = ; from Sunil =
5 3 5 10
+
3 1 2 2 1 3 1 1 21 3
Anil’s New Share = - = ; Sunil’s New Share = - = ; Charan’s Share = + = =
5 5 5 5 10 10 5 10 10 10
2 3 3
Thus, New Profit-sharing Ratio of Anil, Sunil and Charan = : : or 4 :3:3.
5 10 10
Capital of the New Partner (Charan)
4. Total Capital of New Firm on the basis of Charan’s Capital =
Share of Profit of Charan
` 30,000 10
= = 30,000` ¥ = 1,00,000`
3/10 3
Anil’s Capital = ` 1,00,000 ¥ 4 = ` 40,000; Sunil’s Capital = ` 1,00,000 ¥ 3 = ` 30,000;
10 10
Charan’s Capital = ` 30,000.
5. Bank Balance: `
Opening Balance 27,000
Add: Brought by Charan 40,800
67,800
Less: Capital Withdrawn by Anil 7,600
Capital Withdrawn by Sunil 18,400 26,000
Closing Balance 41,800

Illustration 12 (Proportionate Capital Introduced by Incoming Partner).
Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1.
Since both of them are specially abled, sometimes they find it difficult to run the business on
their own. Gauri, a common friend decides to help them. Therefore, they admitted her into
partnership for a 1/3rd share. She brought her share of goodwill in cash and proportionate
capital. At the time of Gauri’s admission, the Balance Sheet of Sahaj and Nimish was as under.

Liabilities ` Assets `
Capital A/cs: Machinery 2,40,000
Sahaj 2,40,000 Furniture 1,60,000
Nimish 1,60,000 4,00,000 Stock 1,00,000
General Reserve 60,000 Sundry Debtors 60,000
Creditors 60,000 Cash 40,000
Employees’ Provident Fund 80,000
6,00,000 6,00,000

It was decided to:
(i) Reduce the value of stock by ` 10,000.
(ii) Depreciate furniture by 10% and appreciate machinery by 5%.
(iii) ` 6,000 of the debtors proved bad. A provision of 5% was to be created on Sundry
Debtors for doubtful debts.
(iv) Goodwill of the firm was valued at ` 90,000.