Page 337 - AAAXII

M.322 An Aid to Accountancy—CBSE XII

Working Notes:
1. Calculation of New Profit-sharing Ratio:
Let the Total Share be 1
1 1 1
Neelam’s Share = ; Remaining Share = -1 = , which will be shared by Usha and Asha in their Old ratio, i.e., 2 : 3.
2 2 2
Thus,
12 2
Usha’s New Share = ¥ =
2 5 10
13 3
Asha’s New Share = ¥ =
2 5 10
1 5
Neelam’s Share = or
2 10
Thus, New Profit-sharing Ratio of Usha, Asha and Neelam = 2 : 3 : 5.
2. Adjustment of Capitals:
1
Neelam’s Capital = ` 5,00,000 for share
2
∴ Total Capital of the New Firm = ` 10,00,000
It will be contributed by partners in their New Profit-sharing Ratio, Thus,
Usha’s New Capital = ` 2,00,000
Asha’s New Capital = ` 3,00,000
Neelam’s Capital = ` 5,00,000
Usha’s Existing Capital = ` 5,59,400 (After all adjustments)
∴ Usha’s Current A/c (Cr.) = ` 5,59,400 – ` 2,00,000 – ` 3,59,400
Asha’s Existing Capital = ` 4,01,600
∴ Asha’s Current A/c (Cr.) = ` 4,01,600 – ` 3,00,000 = ` 1,01,600.
Or

Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Provision for Doubtful Debts A/c 4,000 By Building A/c 40,000
To Machinery A/c 20,000
To Gain (Profit) transferred to:
Keshav’s Capital A/c 8,000
Nirmal’s Capital A/c 4,000
Pankaj’s Capital A/c 4,000 16,000
40,000 40,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Keshav Nirmal Pankaj Particulars Keshav Nirmal Pankaj
` ` ` ` ` `
To Nirmal’s Capital A/c 24,000 ... 12,000 By Balance b/d 1,60,000 80,000 80,000
To Bank A/c ... 1,30,000 ... By General Reserve A/c 20,000 10,000 10,000
To Bank A/c (Bal. Fig.) 4,000 ... 2,000 By Revaluation A/c 8,000 4,000 4,000
To Balance c/d (WN 3) 1,60,000 ... 80,000 By Keshav’s Capital A/c ... 24,000 ...
By Pankaj’s Capital A/c ... 12,000 ...
1,88,000 1,30,000 94,000 1,88,000 1,30,000 94,000