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M.480 An Aid to Accountancy—CBSE XII

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Karim Rehman Naval Particulars Karim Rehman Naval
` ` ` ` ` `
To Profit and Loss A/c 16,000 24,000 ... By Balance b/d 3,75,000 1,25,000 ...
To Karim’s Current A/c 3,59,400 ... ... By Workmen Compensation
(Bal. Fig.) Reserve A/c 16,000 24,000 ...
To Rehman’s Current A/c ... 1,01,600 ... By General Reserve A/c 32,000 48,000 ...
(Bal. Fig.) By Revaluation A/c (Gain) 82,400 1,23,600 ...
To Balance c/d (WN 3) 2,00,000 3,00,000 5,00,000 By Bank A/c ... ... 5,00,000
By Premium for
Goodwill A/c 70,000 1,05,000 ...
5,75,400 4,25,600 5,00,000 5,75,400 4,25,600 5,00,000

Dr. PARTNERS’ CURRENT ACCOUNTS Cr.
Particulars Karim Rehman Particulars Karim Rehman
` ` ` `
To Balance c/d 3,59,400 1,01,600 By Karim’s Capital A/c 3,59,400 ...
By Rehman’s Capital A/c ... 1,01,600
3,59,400 1,01,600 3,59,400 1,01,600

BALANCE SHEET OF NEW FIRM
as at 31st March, 2018
Liabilities ` Assets `
Creditors 1,20,000 Cash in Hand 40,000
Bills Payable 1,60,000 Cash at Bank (` 5,00,000 + ` 1,75,000) 6,75,000
Claim for Damages 5,000 Sundry Debtors 2,05,000
Outstanding Rent 4,000 Furniture 2,00,000
Capital A/cs: Machinery 2,40,000
Karim 2,00,000 Building 3,90,000
Rehman 3,00,000
Naval 5,00,000 10,00,000
Current A/cs:
Karim 3,59,400
Rehman 1,01,600 4,61,000
17,50,000 17,50,000

Working Notes:
1. Unless agreed otherwise, sacrificing ratio of old partners will be same as their old profit-sharing ratio.
2. Calculation of New Profit-sharing Ratio:
1
Let, Total Profit = 1; Naval’s Share =
2
1 1
Remaining Profit = -1 = , which will be shared by Karim and Rehman in their old profit-sharing, i.e.,
2 : 3. Thus, 2 2
2 1 2 3 1 3 1 5
Karim’s New Share = ¥ = ; Rehman’s New Share = ¥ = ; Naval’s Share = or
5 2 10 5 2 10 2 10
2 3 5
Hence, New Profit-sharing Ratio of Karim, Rehman and Naval = : : = 2 :3:5.
10 10 10