Ownclasses

Ashok, Bhim and Chetan were partners in a firm sharing profits in the ratio of 3:2:1. Their Balance Sheet as on 31-3-2015 was as follows:

Ashok, Bhim and Chetan decided to share the future profits equally, w.e.f. April 1, 2015. For this it was agreed that:
(i) Goodwill of the firm be valued at 3,00,000.
(ii) Land be revalued at 1,60,000 and building be depreciated by 6%.
(iii) Creditors of 12,000 were not likely to be claimed and hence be written off.
Prepare Revaluation Account Partner's Capital Accounts and Balance Sheet of the reconstituted firm

Answer





Working Notes:
                       Old Ratio                       New Ratio
                        3:2:1                               1:1:1
straight S divided by straight R space of space Ashok space equals space Old space Ratio space minus space New space Ratio space equals space 3 over 6 minus 1 third equals box enclose 1 over 6 end enclose space rightwards double arrow space Sacrificing
straight S divided by straight R space of space Bhim space equals space Old space Ratio space minus space New space Ratio space equals 2 over 6 minus 1 third equals 0 over 6
straight S divided by straight R space of space Chetan space equals space Old space Ratio space minus space New space Ratio space equals space 1 over 6 minus 1 third equals box enclose negative 1 over 6 end enclose rightwards double arrow Gaining
Ashok will be compensated by Chetan.
Chetan's Capital A/c                    Dr               50,000
       To Ashok's Capital A/C                                                        50,000