Their Balance Sheet is as follows:
Balance Sheet as on 31st March, 2011
|
Liabilities
|
Amount
Rs.
|
Amount
Rs.
|
Assets
|
Amount
Rs.
|
Amount
Rs.
|
|
Capital
A/c
|
|
|
Buildings
|
|
100000
|
|
Raj
|
|
100000
|
Furniture
|
|
10000
|
|
Dev
|
|
75000
|
Stock
|
|
31000
|
|
Creditors
|
|
10000
|
Debtors
|
50000
|
|
|
Bills
Payable
|
|
5000
|
(-)
R.D.D.
|
-1000
|
49000
|
|
General
Reserve
|
|
15000
|
Bank
Balance
|
|
15000
|
|
|
|
205000
|
|
|
205000
|
1. On 1st April, 2011 they admitted
Manoj on following terms:
2. Building should be revalued for Rs. 1,25,000.
3. Depreciate furniture at 12 ½ % p.a. and stock
at 10% p.a.
4. R.D.D. should be maintained as it is.
5. The Capital Accounts of partners should be
adjusted in their new
profit sharing ratio through bank account.
Prepare, Profit & Loss Adjustment A/c, Capital
Accounts of partners and Balance Sheet of the new firm and show how you have
calculated new ratio and new capital.
Solution:
In the books of Partnership firm.
Profit and Loss Adjustment Account
|
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
|
To
Furniture A/c
|
|
1250
|
By
Buildings A/c
|
|
25000
|
|
To
Stock A/c
|
|
3100
|
|
|
|
|
To
Partners' Capital A/c
[Profit]
|
|
|
|
|
|
|
Raj
|
12390
|
|
|
|
|
|
Dev
|
8260
|
20650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25000
|
|
|
25000
|
Partner's Capital Accounts
|
Particulars
|
Raj
|
Dev
|
Manoj
|
Particulars
|
Raj
|
Dev
|
Manoj
|
|
To
Balance c/d
|
240000
|
160000
|
100000
|
By
Balance b/d
|
100000
|
75000
|
-
|
|
|
|
|
|
By
General Reserve
|
9000
|
6000
|
-
|
|
|
|
|
|
By
Bank A/c
|
-
|
-
|
100000
|
|
|
|
|
|
By
Goodwill A/c
|
15000
|
10000
|
-
|
|
|
|
|
|
By
Profit & Loss Adjustment A/c
|
12390
|
8260
|
-
|
|
|
|
|
|
By
Bank A/c
(Additional
capital )
|
103610
|
60740
|
-
|
|
|
240000
|
160000
|
100000
|
|
240000
|
160000
|
100000
|
Balance Sheet as on 1st April, 2011
|
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
|
Partners'
Capital A/c
|
|
|
Buildings
|
100000
|
|
|
Raj
|
240000
|
|
(+)
Appreciation
|
25000
|
125000
|
|
Dev
|
160000
|
|
Furniture
|
10000
|
|
|
Manoj
|
100000
|
500000
|
(-)
Depreciation @ 12 ½ %
|
-1250
|
8750
|
|
Creditors
|
|
10000
|
Stock
|
31000
|
|
|
Bills
Payable
|
|
5000
|
(-)
Depreciation @ 10%
|
-3100
|
27900
|
|
|
|
|
Debtors
|
50000
|
|
|
|
|
|
(-)
R.D.D.
|
-1000
|
49000
|
|
|
|
|
Bank
Balance
|
|
304350
|
|
|
|
515000
|
|
|
515000
|
Calculation of New Ratio:
Old Ratio of Raj and Dev is 3:2
Share given to New partner Manoj is 1/5.
We know that,
New Ratio = (Balance Ratio of 1) × Old Ratio.
∴
Raj's New Ratio = (1 – 1/5 )× 3/5 = 12/25
∴
Dev's New Ratio = (1 – 1/5) × 2/5 = 8/25
And Manoj's New
Ratio = (1/5 ) × (5/5) {To Make Base 25}
∴ Manoj's New Ratio
= 5/25
∴ New ratio of Raj,
Dev and Manoj is (12/25) :(8/25): (5/25)
i.e. 12:8:5.
Now, Capital
balance of all partners will be adjusted in their new profit sharing ratio
through bank account as follows:
Total Capital of
the Firm = New partner's Capital × Reciprocal of new partner's profit sharing
ratio.
∴ Total Capital of
the Firm = 1,00,000 × (5/1) = Rs. 5,00,000
Now, Raj's New
Capital = 5,00,000 × (12/25) = Rs.
2,40,000
Dev's New Capital =
5,00,000 × (8/25) = Rs. 1,60,000
We Know the New
Capital of Manoj and that is Rs.
1,00,000.
∴ New capital of
Raj, Dev and Manoj are Rs. 2,40,000, Rs. 1,.60,000 and Rs. 1,00,000
respectively.