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The Balance Sheet of Madhu and Vidhi who are sharing profits in the ratio of 2 : 3 as at 31st March, 2016 is given below: Madhu and Vidhi decided to admit Gayatri as a new partner from 1st April, 2016 and their new profit-sharing ratio will be 2 : 3 : 5. Gayatri brought ₹ 4,00,000 as her capital and her share of goodwill premium in cash. (a) Goodwill of the firm was valued at ₹ 3,00,000. (b) Land and Building was found undervalued by ₹ 26,000. (c) Provision for doubtful debts was to be made equal to 5% of the debtors. (d) There was a claim of ₹ 6,000 on account of workmen compensation. Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm. |
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Answer» aluation Account, Partners CAPITAL Accounts and the Balance SHEET of the reconstituted firm are calculated below:EXPLANATION:Given,Madhu and Vidhi sharing profits in the RATIO of 2 : 3 Their NEW profit-sharing ratio will be 2 : 3 : 5 after Gayatri became a partner.Calculation of Gayatri's Share of Goodwill Gayatri's share Calculation of Sacrificing Ratio The sacrificing ratio is calculated using the following formulaSacrificing Ratio = Old Ratio - New Ratio Madhu Vidhi |
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