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प्रश्न
A and B are partners sharing profits and losses in the ratio of 3:1. On Ist Apr. 2017 they admitted C as a new partner for 1/4 share in the profits of the firm. C brings Rs 20,000 as for his 1/4 share in the profits of the firm. The capitals of A and B after all adjustments in respect of goodwill, revaluation of assets and liabilities, etc. has been worked out at Rs 50,000 for A and Rs 12,000 for B. It is agreed that partner’s capitals will be according to new profit sharing ratio. Calculate the new capitals of A and B and pass the necessary journal entries assuming that A and B brought in or withdrew the necessary cash as the case may be for making their capitals in proportion to their profit sharing ratio?
उत्तर
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Books of A, B and C Journal |
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Date |
Particulars |
L.F. |
Amount Rs |
Amount Rs |
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2017 |
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Apr. 01 |
A’s Capital A/c |
Dr. |
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5,000 |
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To Cash A/c |
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5,000 |
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(Excess capital withdrawn by A) |
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Cash A/c |
Dr. |
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3,000 |
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To B’s Capital A/c |
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3,000 |
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(Capital brought in by B to make in proportion to the profit sharing) |
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1) Calculation of New Profit sharing Ratio
C's Share = `1/4`
Remaining share = 1 - `1/4` = `3/4`
A's new share = `3/4 xx 3/4 = 9/16`
B's new share = `1/4 xx 3/4 = 3/16`
`{ "C's share" = 1/4 xx 4/4 = 4/16}`
New Profit sharing ratio of A, B and C will be 9:3:4
2) New Capital of A and B.
C bring Rs 20,000 for 1/4th share of profit in the new firm.
Thus, total capital of firm on the basis of C’s share
= 20,000 x `4/1` = 80,000
A's Capital = `9/16` x 80,000 = 45,000
Thus, A will withdraw = 50,000 - 45,000 = 5,000
B's Capital = `3/16` x 80,000 = 15,000
Thus, B’s will bring 15,000 − 12,000 = 3,000
APPEARS IN
संबंधित प्रश्न
Identify various matters that need adjustments at the time of admission of a new partner.
Do you advise that assets and liabilities must be revalued at the time of admission of a partner? If so, why? Also describe how is this treated in the book of account?
Amar and Samar were partners in a firm sharing profits and losses in 3:1 ratio. They admitted Kanwar for 1/4 share of profits. Kanwar could not bring his share of goodwill premium in cash. The Goodwill of the firm was valued at Rs. 80,000 on Kanwar’s admission. Record necessary journal entry for goodwill on Kanwar’s admission.
Given below is the Balance Sheet of A and B, who are carrying on partnership business on 31.12.2016. A and B share profits and losses in the ratio of 2:1.
Balance Sheet of A and B as on December 31, 2016
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Liabilites |
Amount (Rs) |
Assets |
Amount (Rs) |
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Bills Payable |
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10,000 |
Cash in Hand |
10,000 |
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Creditors |
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58,000 |
Cash at Bank |
40,000 |
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Outstanding |
|
2,000 |
Sundry Debtors |
60,000 |
|
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Expenses |
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- |
Stock |
40,000 |
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Capitals: |
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Plant |
1,00,000 |
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A |
1,80,000 |
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Buildings |
1,50,000 |
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B |
1,50,000 |
3,30,000 |
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4,00,000 |
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4,00,000 |
C is admitted as a partner on the date of the balance sheet on the following terms:
(i) C will bring in Rs 1,00,000 as his capital and Rs 60,000 as his share of goodwill for 1/4 share in the profits.
(ii) Plant is to be appreciated to Rs 1,20,000 and the value of buildings is to be appreciated by 10%.
(iii) Stock is found over valued by Rs 4,000.
(iv) A provision for bad and doubtful debts is to be created at 5% of debtors.
(v) Creditors were unrecorded to the extent of Rs 1,000.
Pass the necessary journal entries, prepare the revaluation account and partners’ capital accounts, and show the Balance Sheet after the admission of C.
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Pass necessary Journal entries in the books of the firm.
Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2 respectively. The fixed capital of Disha is ₹ 4,80,000 and of Divya is ₹ 3,00,000. On 1st April, 2019 they admitted Hina as a new partner for 1/5th share in future profits. Hina brought ₹ 3,00,000 as her capital. Calculate value of goodwill of the firm and record necessary Journal entries on Hina's admission.
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According to which section of the Indian Partnership Act, 1932, a person be admitted as a new partner?
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