8.
Dear Student,
Calculation of last three years' normal profit
Total Normal profit =
Goodwill =
Guru's share of Goodwill=
Old Ratio was 3:2 , New Ratio is 7:5:8
So Sacrificing ratio is 5:3
Regards,
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 =
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,