Zavier, Yusuf and Zaman were partners in a firmsharing profits in the ratio of 4:3:2. On 1st April, 2014, their Balance Sheet was as folows: Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1st April, 2014, the terms of which were as follows, (i) That land and building be appreciated by 10% (ii) The provision for bad debts is no longer necessary. (iii) That stock be appreciated by 20% (iv) That goodwill of the firm be fixed at Rs 54,000. Yusuf's share fo the same be adjusted into Xavier's and Zaman's Capital Accounts, who are going to share future profits in the ratio 2:1. (v) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capital of Xavire and Zaman will be in their profit sharing ratio. Prepare Revaluation Account and Partners' Capital Accounts.

Zavier, Yusuf and Zaman were partners in a firmsharing profits in the

1.	Zavier, Yusuf and Zaman were partners in a firmsharing profits in the ratio of 4:3:2. On 1st April, 2014, their Balance Sheet was as folows: Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1st April, 2014, the terms of which were as follows, (i) That land and building be appreciated by 10% (ii) The provision for bad debts is no longer necessary. (iii) That stock be appreciated by 20% (iv) That goodwill of the firm be fixed at Rs 54,000. Yusuf's share fo the same be adjusted into Xavier's and Zaman's Capital Accounts, who are going to share future profits in the ratio 2:1. (v) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capital of Xavire and Zaman will be in their profit sharing ratio. Prepare Revaluation Account and Partners' Capital Accounts.
Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_PA_E01_203_S01.png" width="80%"/> <br/> Woeking notes: <br/> <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>. Calculation of Gaining Ratio, <br/> Xavier's Gain `=<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a>/3-4/8=(18-12)/(27)=6/27'"Zaman's Gain"=1/3-2/9=(9-6)/(27)=3/27` <br/> Gaining Ratio `=6/27:3/27or2:1` <br/> 2. Yusuf's Share of Goodwill Rs 18,000 (i.e., Rs `54,000xx3//9`)will be contributed by Xavier and Zaman in their gaining ratio of `2:1.` <br/> 3. `{:("Calculation of Total <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> of New Firm after Yousuf's Retirement,",Rs),("<a href="https://interviewquestions.tuteehub.com/tag/adjusted-7661905" style="font-weight:bold;" target="_blank" title="Click to know more about ADJUSTED">ADJUSTED</a> Old Capital of Xavier Rs (1,20,000 + 11,400-12,000)","1,19,400"),("Adjusted Od Capital of Zaman Rs (60,000+5,700-6,000)","59,700"),("Total Capital of New Firm after Yusuf's Retirement",underline underline overline ("1,79,100")),("Calculation of cash to be brought in or paid off:",):}` <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_PA_E01_203_S02.png" width="80%"/></body></html>

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Zavier, Yusuf and Zaman were partners in a firmsharing profits in the ratio of 4:3:2. On 1st April, 2014, their Balance Sheet was as folows: Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1st April, 2014, the terms of which were as follows, (i) That land and building be appreciated by 10% (ii) The provision for bad debts is no longer necessary. (iii) That stock be appreciated by 20% (iv) That goodwill of the firm be fixed at Rs 54,000. Yusuf's share fo the same be adjusted into Xavier's and Zaman's Capital Accounts, who are going to share future profits in the ratio 2:1. (v) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capital of Xavire and Zaman will be in their profit sharing ratio. Prepare Revaluation Account and Partners' Capital Accounts.
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