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Pramod and Vinod are partners sharing profits and losses in the ratio of 3:2. After the admission of Ramesh the new ratio of Pramod, Vinod and Ramesh is 4:3:2. Find out the sacrifice ratio. - Book Keeping and Accountancy

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Question

Pramod and Vinod are partners sharing profits and losses in the ratio of 3:2. After the admission of Ramesh the new ratio of Pramod, Vinod and Ramesh is 4:3:2. Find out the sacrifice ratio. 

Sum

Solution

Sacrifice Ratio = Old ratio – New ratio

Pramod’s Sacrifice ratio =`3/5-4/9=(27–20)/45=7/45`

Vinod’s Sacrifice ratio =`2/5–3/9=(18 –15)/45=3/45`

∴ Sacrifice ratio =`7/45 :3/45` = 7 : 3.

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Admission of a Partner - Revaluation of Assets and Liabilities
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Chapter 3: Reconstitution of Partnership (Admission of Partner) - Exercise 3.1 (Objective Type Questions) [Page 160]

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Balbharati Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 3 Reconstitution of Partnership (Admission of Partner)
Exercise 3.1 (Objective Type Questions) | Q 1. (E) 3. | Page 160

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Prepare profit and loss A/c, Partner’s Current A/c, Balance Sheet of the new firm


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Prepare necessary ledger accounts and the balance sheet after admission.


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What would be the journal entry of when excess capital was withdrawn by the partner?


The account which is prepared to adjust the increase or decrease in the value of assets at the time of admission of a partner is called:


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Reason (R): The General reserve, Reserve Fund or the Balance of Profit and Loss Account are the result of the past profits when the new partner was not admitted.


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Prepare Profit and Loss Adjustment Alc, Capital Accounts of Partners and Balance Sheet of the new firm.


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Balance Sheet as on 31st March, 2023
Liabilities Amount (₹) Assets Amount (₹) Amount (₹)
Capital Accounts:   Building   1,08,000
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Vihaan 1,50,000 Stock   72,000
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(2) The new profit sharing ratio is to be 5 : 3 : 2.

(3) The assets are to be revalued as under:
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(4) R.D.D. to be increased up to ₹ 6,000

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Balance Sheet as on 31st March, 2020

Liabilities   Amount (₹) Assets   Amount (₹)
Capitals:   40,500 Bank   11,250
Seeta 22,500 Bills Receivable    5,700
Geeta 18,000 Debtors 31,200 30,000
Creditors   18,750 (-) R.D.D. 1,200
Biil Payable   15,000 Stock   18,000
Bank Loan   24,000 Furniture   7,050
General Reserve   3,750 Machinery   7,500
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On 1st April, 2020 they admitted Reeta on the following terms:

  1. For half (1/2) share in future profit Reeta should bring ₹ 15,000 as capital and ₹ 7,500 for goodwill in cash.
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  4. The stock is to be reduced by 10% and machinery depreciated by 5%.
  5. Half of amount of goodwill is withdrawn by old partners.

Pass the necessary Journal Entries in the books of the firm.


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