# 8.

Dear Student,

 Journal Entries Date Particulars LF Debit Amount (in Rs) Credit Amount (in Rs) 31 Mar 2015 Cash A/c Dr 124,000 To Guru's Capital A/c 100,000 To Premium for Goodwill A/c 24,000 (Goodwill & Capital brought in by new partner) Premium for Goodwill A/c Dr 24,000 To Gopal's Capital A/c 15,000 To Govind's Capital A/c 9,000 (Premium for goodwill distributed among sacrificing partners in sacrificing ratio) Fixed Assets A/c Dr 100,000 To Revaluation A/c 100,000 (Fixed Assets revalued) Revaluation A/c Dr 70,000 To Current Assets A/c 20,000 To Investments A/c 50,000 (Current Assets  & Investments Revalued)

Calculation of last three years' normal profit
 Year Actual Profit/ Loss (A) Abnormal profit/Loss (B) Normal profit/Loss (A)+(B) 2013 20,000 -40,000 -20,000 2014 -80,000 1,10,000 30,000 2015 1,05,000 -25,000 80,000

Total Normal profit =
Goodwill = $90,000×\frac{2}{3}=60,000$
Guru's share of Goodwill=

Old Ratio was 3:2 , New Ratio is 7:5:8
So Sacrificing ratio is 5:3

 Revaluation A/c Date Particulars Amount (in Rs) Date Particulars Amount (in Rs) 31 Mar 2015 Current Assets A/c 20,000 31 Mar 2015 Fixed Assets A/c 100,000 Investments A/c 50,000 Revaluation profit transferred to Gopal's Capital A/c 18,000 Govind's Capital A/c 12,000 100,000 100,000

 Partner's Capital A/c Date Particulars Gopal's Capital A/c Govind's Capital A/c Guru's Capital A/c Date Particulars Gopal's Capital A/c Govind's Capital A/c Guru's Capital A/c 31 Mar 2015 Balance c/d 153,000 101,000 100,000 31 Mar 2015 Balance b/d 120,000 80,000 Cash A/c 100,000 Cash A/c (Premium for goodwill) (5:3) 15,000 9,000 Profit on revaluation A/c 18,000 12,000 153,000 101,000 100,000 153,000 101,000 100,000

 Balance Sheet as on 01.04.2015 Liabilities Amount (in Rs) Assets Amount (in Rs) Long term Loan 200,000 Fixed Assets 400,000 Current Liabilities 250,000 Current Assets 180,000 Capital A/cs Loans and Advances 100,000 Gopal's Capital A/c 153,000 Cash 124,000 Govind's Capital A/c 101,000 Guru's Capital A/c 100,000 804,000 804,000

Regards,

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