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X, Y and Z are partners sharing profits and losses in the ratio of 7 : 5 : 4 . Their Balance Sheet as at 31st March, 2018 stood as: Partners decided that with effect from 1st April, 2018 , they will share profits and losses in the ratio of 3 : 2 : 1. For this purpose, goodwill of the firm was valued at ₹ 1,50,000. The partners neither want to record the goodwill nor want to distribute the General Reserve and profits. |
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Answer» to X's Capital = Rs.15,000Debited to Y's Capital =Rs.5,000Credited to Z's Capital = Rs.20,000Explanation:CALCULATION of GAINING/Sacrificing Ratio Old Ratio between X,Y and Z is 7:5:4New Ratio between X,Y and Z is 3:2:1Sacrificing or Gaining Ratio = Old ratio - New ratioX's SHARE = - = -Y's Share = - = -Z's Share = - = ADJUSTMENT of General reserve ,PROFIT,loss Account and Good willTotal amount for Adjustment = General reserve +Profit and loss Account + Good will = 65,000+ 25,000+ 1,50,000 = 2,40,000.Debited to X's Capital = 2,40,000 × = Rs.15,000Debited to Y's Capital =2,40,000 × = Rs.5,000Credited to Z's Capital 2,40,000 × = Rs.20,000 |
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