1.

Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows: BALANCE SHEET OF RAM, MOHAN, SOHAN AND HARI as on 1st April, 2016 Liabilities ₹ Assets ₹ Capital A/cs: Fixed Assets 9,00,000 Ram 4,00,000 Current Assets 5,20,000 Mohan 4,50,000 Sohan 2,50,000 Hari 2,00,000 13,00,000 Workmen Compensation Reserve 1,20,000 14,20,000 14,20,000 From the above date, the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purpose the goodwill of the firm was valued at ₹ 1,80,000. The partners also agreed for the following:(a) The Claim for workmen compensation has been estimated at ₹ 1,50,000.(b) Adjust the capitals of the partners according to the new profit-sharing ratio by opening Partners' Current Accounts.Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

Answer» Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows:

























































































BALANCE SHEET OF RAM, MOHAN, SOHAN AND HARI


as on 1st April, 2016

Liabilities Assets
Capital A/cs: Fixed Assets 9,00,000
Ram 4,00,000 Current Assets 5,20,000
Mohan 4,50,000
Sohan 2,50,000
Hari 2,00,000 13,00,000
Workmen Compensation Reserve 1,20,000
14,20,000 14,20,000



From the above date, the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purpose the goodwill of the firm was valued at ₹ 1,80,000. The partners also agreed for the following:(a) The Claim for workmen compensation has been estimated at ₹ 1,50,000.

(b) Adjust the capitals of the partners according to the new profit-sharing ratio by opening Partners' Current Accounts.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.


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