Page 442 - AAAXII

Model Test Papers M.423

1 1 4 5
Hence, Sacrificing Ratio of A and B = : or : or 4 : 5 .
10 8 40 40
3 1 5 20
A’s New Share (Old Share – Sacrifice) = - = or
5 10 10 40
2 1 11
B’s New Share (Old Share – Sacrifice) = 5 - 8 = 40
1 1 45+ 9
C’s Share = + = =
10 8 40 40
20 11 9
Hence, New Profit-sharing Ratio of A, B and C = : : = 20 : 11 : 9.
40 40 40
(b) JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Arjun’s Capital A/c ...Dr. 42,000
Bhim’s Capital A/c ...Dr. 15,000
Nakul’s Capital A/c ...Dr. 18,000
To Goodwill A/c 75,000
(Being the existing goodwill written off)
Arjun’s Capital A/c ...Dr. 10,000
To Bhim’s Capital A/c (WN 3) 10,000
(Being the amount of Bhim’s Share of Goodwill adjusted)
Profit and Loss Appropriation A/c ...Dr. 1,00,000
To Arjun’s Capital A/c 76,000
To Nakul’s Capital A/c 24,000
(Being the profit distributed between Arjun and Nakul in their
new profit-sharing ratio, i.e., 19 : 6 (WN 1 and 2))
Working Notes:
1. New Profit-sharing Ratio of Arjun and Nakul:
14 5 19 6
Arjun’s New Share = + = ; Nakul’s Share =
25 25 25 25
Thus, New Profit-sharing Ratio of Arjun and Nakul = 19 : 6.
2. Distribution of Profit:
19 6
Arjun’s Share = ` 1,00,000 × = ` 76,000; Nakul’s Share = ` 1,00,000 × = ` 24,000.
25 25
3. Valuation and Adjustment of Goodwill:
Super Profit = Average Profit – Normal Profit
+
È 50,000 + 55,000 60,000 ˘
= ` Í Î 3 ˙ ˚ - ` 30,000
= ` 55,000 – ` 30,000 = ` 25,000
Goodwill = Super Profit × Number of Years’ Purchase
= ` 25,000 × 2 = ` 50,000
5
Bhim’s Share in Goodwill = ` 50,000 × = ` 10,000
25
5
Bhim retires and surrenders his th share in favour of Arjun, who is the gaining partner.
25