Page 446 - AAAXII

Model Test Papers M.427

Working Notes:
1. Calculation of New Profit-sharing Ratio:
Let the Total Profit = 1
1
Z’s Share =
4
Share of X and Y = 1- 1 = 3
4 4
3 2 6
X’s New Share = ¥ =
4 3 12
3 1 3
Y’s New Share = ¥ =
4 3 12
1 3
Z’s Share = or
4 12
6 3 3
Thus, New Profit-sharing Ratio of X, Y and Z = : : = 6 : 3 : 3 or 2 : 1 : 1.
12 12 12
2. Adjustment of Capitals:
Capital of New Partner
Total Capital of New Firm on the basis of New Partner’s Capital =
Share of Profit of the New Partner
` 1,50,000 ¥ 4
= 1 = ` 6,00,000
2
X’s Capital in the New Firm = 6,00,000` ¥ = ` 3,00,000;
4
`
Y’s Capital in the New Firm = 6,00,000 ¥ 1 = ` 1,50,000;
4
1
`
Z’s Capital in the New Firm = 6,00,000 ¥ = ` 1,50,000.
4
3. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 3,32,500 By X’s Capital A/c 20,000
To Premium for Goodwill A/c 60,000 By Y’s Capital A/c 10,000
To X’s Capital A/c 84,000 By Y’s Capital A/c 3,000
By Balance c/d 4,43,500
4,76,500 4,76,500
Or

Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Outstanding Rent A/c 25,000 By Land and Building A/c 60,000
To Machinery A/c 60,000 By Stock A/c 25,000
To Bad Debts A/c (WN 1) 7,000 By Loss transferred to:
Aruna’s Capital A/c 2,000
Karuna’s Capital A/c 3,000
Varuna’s Capital A/c 2,000 7,000
92,000 92,000