1.

Sahil and Prashant are partners in a firm sharing profits and losses in the ratio of 2:3. Sahil’s and Rahul’s capitals are 25,000 and 40,000 respectively. They admitted Rahul as new partner. The new profit sharing ratio is 2:2:1. Rohan is required to bring Rs. 20,000 as his capital. The profit on revaluation of assets and liabilities is Rs.5,000. It is agreed that capitals of partners should be in the new profit sharing ratio. Any excess or deficit amount should be transferred to their current accounts. Pass necessary Journal entries.

Answer»

Calculation of present capital of Sahil and Prashant

ParticularsSahilPrashant
Original Capital35,00040,000
Profit on Revaluation2,000 3,000
Total37,00043,000
Capital Should be40,00040,000
Excess or deficit-3,000+3,000

                       Journal

DateParticularsDr.Cr.
Sahil’s Current A/c Dr3,000
To Sahil’s Capital A/c3,000
(for deficit in capital transferred to current account)
Prashant’s Capital A/c Dr.3,000
To Prashant’s Current A/c3,000
(for excess capital transferred to current account)


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