Aman,Chaman and Daman are partners sharingprofitsand losses in the ratio of5:4:1. Their Balance Sheet as at 31st March, 2019 was as follows: Profits-sharingratioo w.e.f 1st April, 2019 wasdecided to be equal. It was good among thepartners to carryout followingadjustments. (i) Stockto bereduced to â‚¹40,000. (ii) Provisionfor Doubtful Debts to bewritten back , since alldebtors are good. (iii) Computers to be reduced by â‚¹20,000. (iv) Outof theSalaries Payable, â‚¹10,000 wasnot payable as theemployee leftwithoutnotice. (v) Outsanding Expensewerenot payableanymore. (vi) An unrecorded asset (Motor Cycle) valued at â‚¹10,000 to beaccounted. (vii) Goodwillof the firmwas valued at â‚¹50,000. (viii) Totalcapitalof the firmâ‚¹6,00,000 was to bein profit-sharing ratio, excess capital tobc withdrawnandshortfallto bemade good. PrepareRevauation Account,Partners' CapitalAccountsand BalanceSheet of thenew firm.

Aman,Chaman and Daman are partners sharingprofitsand losses in the rat

1.	Aman,Chaman and Daman are partners sharingprofitsand losses in the ratio of5:4:1. Their Balance Sheet as at 31st March, 2019 was as follows: Profits-sharingratioo w.e.f 1st April, 2019 wasdecided to be equal. It was good among thepartners to carryout followingadjustments. (i) Stockto bereduced to â‚¹40,000. (ii) Provisionfor Doubtful Debts to bewritten back , since alldebtors are good. (iii) Computers to be reduced by â‚¹20,000. (iv) Outof theSalaries Payable, â‚¹10,000 wasnot payable as theemployee leftwithoutnotice. (v) Outsanding Expensewerenot payableanymore. (vi) An unrecorded asset (Motor Cycle) valued at â‚¹10,000 to beaccounted. (vii) Goodwillof the firmwas valued at â‚¹50,000. (viii) Totalcapitalof the firmâ‚¹6,00,000 was to bein profit-sharing ratio, excess capital tobc withdrawnandshortfallto bemade good. PrepareRevauation Account,Partners' CapitalAccountsand BalanceSheet of thenew firm.
Answer» Solution : WORKING Note: 2. Adjustmentof GOODWILL: `{:(,,,"â‚¹", "â‚¹"), ("DAMAN's Capital A/c (50,000" xx "7/30)", "....Dr." ,, 11","667 , ), ("To Aman's Capital A/c (â‚¹ 50,000"xx "5/30)" ,,,, 8","333), ("To Chaman's Capital A/c(â‚¹ 50,000" xx "2/30)" ,,,, 3","334):}` 3. TotalCapitalof the firm = â‚¹6,00,000 Capitalof eachPartner in THEFIRMAS per new Profit-Sharingratio will beâ‚¹ 2,00,000(i.e., `â‚¹6,00,000 xx 1//3`) `{:(,,,"â‚¹", "â‚¹"), ("Daman's Capital A/c (50,000" xx "7/30)", "....Dr." ,, 11","667 , ), ("To Aman's Capital A/c (â‚¹ 50,000"xx "5/30)" ,,,, 8","333), ("To Chaman's Capital A/c(â‚¹ 50,000" xx "2/30)" ,,,, 3","334):}`

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