Question 31:
Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3. On 1st April, 2016, their Balance Sheet was as follows:
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BALANCE SHEET OF SURESH, RAMESH, MAHESH AND GANESH as on 1st April, 2016 |
||||
|
Liabilities |
(₹) |
Assets |
(₹) |
|
|
Capital A/cs: |
|
Fixed Assets |
6,00,000 |
|
|
Suresh |
1,00,000 |
|
Current Assets |
3,45,000 |
|
Ramesh |
1,50,000 |
|
|
|
|
Mahesh |
2,00,000 |
|
|
|
|
Ganesh |
2,50,000 |
7,00,000 |
|
|
|
Sundry Creditors |
|
1,70,000 |
|
|
|
Workmen Compensation Reserve |
|
75,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,45,000 |
|
9,45,000 |
|
|
|
|
|
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From the above date, the partners decided to
share the future profits equally. For this purpose the goodwill of the firm was
valued at ₹90,000. It was also agreed that:
(a) Claim against Workmen Compensation Reserve will be estimated at₹1,00,000
and fixed assets will be depreciated by 10%.
(b) The Capitals of the partners will be adjusted according to the new
profit-sharing ratio. For this, necessary cash will be brought or paid by the
partners as the case may be.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet
of the reconstituted firm.
Answer:
|
Revaluation Account |
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|
Dr. |
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
|
Depreciation on Fixed Assets A/c |
60,000 |
Revaluation Loss |
|
|
|
Provision for Claim against WCF |
25,000 |
Suresh’s Capital A/c |
17,000 |
|
|
|
|
Ramesh’s Capital A/c |
17,000 |
|
|
|
|
Mahesh’s Capital A/c |
25,500 |
|
|
|
|
Ganesh’s Capital A/c |
25,500 |
85,000 |
|
|
|
|
|
|
|
|
85,000 |
|
85,000 |
|
|
|
|
|
|
|
|
Partners’ Capital Account |
|||||||||
|
Dr. |
Cr. |
||||||||
|
Particulars |
Suresh |
Ramesh |
Mahesh |
Ganesh |
Particulars |
Suresh |
Ramesh |
Mahesh |
Ganesh |
|
Revaluation A/c |
17,000 |
17,000 |
25,500 |
25,500 |
Balance b/d |
1,00,000 |
1,50,000 |
2,00,000 |
2,50,000 |
|
Mahesh's Capital A/c |
2,250 |
2,250 |
- |
- |
Suresh’s Capital A/c |
- |
- |
2,250 |
2,250 |
|
Ganesh's Capital A/c |
2,250 |
2,250 |
- |
- |
Ramesh’s Capital A/c |
- |
- |
2,250 |
2,250 |
|
Cash A/c |
- |
- |
25,250 |
75,250 |
Cash A/c |
75,250 |
25,250 |
- |
- |
|
Balance c/d |
1,53,750 |
1,53,750 |
1,53,750 |
1,53,750 |
|
|
|
|
|
|
|
1,75,250 |
1,75,250 |
2,04,500 |
2,54,500 |
|
1,75,250 |
1,75,250 |
2,04,500 |
2,54,500 |
|
|
|
|
|
|
|
|
|
|
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|
Balance Sheet |
||||
|
Liabilities |
(₹) |
Assets |
(₹) |
|
|
Capital A/c |
|
Fixed Assets (Less depreciation) |
5,40,000 |
|
|
Suresh's Capital A/c |
1,53,750 |
|
Current Assets |
3,45,000 |
|
Ramesh's Capital A/c |
1,53,750 |
|
|
|
|
Mahesh's Capital A/c |
1,53,750 |
|
|
|
|
Ganesh's Capital A/c |
1,53,750 |
6,15,000 |
|
|
|
Claim against WCF |
1,00,000 |
|
|
|
|
Sundry Creditors |
1,70,000 |
|
|
|
|
|
8,85,000 |
|
8,85,000 |
|
|
|
|
|
|
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Working Notes
WN1:
Calculation of
Gaining/Sacrificing Ratio
Adjustment for Goodwill
|
Suresh’s Capital A/c |
Dr. |
|
4,500 |
|
|
Ramesh’s Capital A/c |
Dr. |
|
4,500 |
|
|
To Mahesh’s Capital A/c |
|
|
|
4,500 |
|
To Ganesh’s Capital A/c |
|
|
|
4,500 |
|
(Gaining partners compensate sacrificing partners) |
|
|
|
|
WN2: Calculation of Adjusted Capital
Suresh = 1,00,000 – 21,500 = ₹ 78,500
Ramesh = 1,50,000 – 21,500 = ₹ 1,28,500
Mahesh = 2,04,500 – 25,500 = ₹ 1,79,000
Ganesh = 2,54,500 – 25,500 = ₹ 2,29,000
Total Combined Capital = 6,15,000
WN3: Calculation of New Capital
Suresh=6,15,000×1/4=1,53,750
Ramesh=6,15,000×1/4=1,53,750
Mahesh=6,15,000×1/4=1,53,750
Ganesh=6,15,000×1/4=1,53,750
Ts Grewal Solution 2026-2027
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Class 12 / Volume – I
Chapter 3 – Change in Profit-Sharing Ratio Among the Existing Partner