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प्रश्न
L, M and N are partners sharing profits and losses in equal proportion. On 31st March 2026, their balance sheet was as follows:
| Liabilities | ₹ | ₹ | Assets | ₹ | ₹ |
| Creditors | 58,000 | Cash | 8,000 | ||
| Reserve and Surplus | 42,000 | Debtors | 75,000 | ||
| Capital Accounts: | Less: Provision for Doubtful Debts | 3,000 | 72,000 | ||
| L | 2,00,000 | Stock | 1,80,000 | ||
| M | 1,00,000 | Fixed Assets | 2,20,000 | ||
| N | 80,000 | 3,80,000 | |||
| 4,80,000 | 4,80,000 |
The partners decided that with effect from 1st April 2026, they will share profits and losses in the ratio of 4 : 2 : 1. For this purpose goodwill is to be valued at 2 years' purchase of the average profits of the last four years, which were:
| ₹ | |
| Year ending 31st March 2023 | 20,000 (Loss) |
| Year ending 31st March 2024 | 48,000 (Profit) |
| Year ending 31st March 2025 | 60,000 (Profit) |
| Year ending 31st March 2026 | 80,000 (Profit) |
They further agreed that:
- Provision for doubtful debts be increased by ₹ 2,000.
- Stock be appreciated by 20% and fixed assets be depreciated by 10%.
- Creditors be taken at ₹ 49,000.
Partners do not desire to record the revised values of assets and liabilities in the books. They also desire to leave the reserve and surplus undisturbed.
You are required to give effect to the change in profit sharing ratio by passing a single journal entry. Also prepare the revised balance sheet.
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उत्तर
| Journal Entry | ||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Dr. ₹ | Cr. ₹ |
| L’s Capital A/c ...Dr. | 35,000 | |||
| To M’s Capital A/c | 7,000 | |||
| To N’s Capital A/c | 28,000 | |||
| (Being adjustment made for goodwill, profit on revaluation and Reserve & Surplus due to change in profit-sharing ratio, without altering their book values.) | ||||
| Revised Balance Sheet as at 1st April, 2026 |
|||||
|---|---|---|---|---|---|
| Liabilities | ₹ | ₹ | Assets | ₹ | ₹ |
| Creditors | 58,000 | Cash | 8,000 | ||
| Reserve and Surplus | 42,000 | Debtors | 75,000 | ||
| Capital Accounts: | Less: Provision for Doubtful Debts | (3,000) | 72,000 | ||
| L | 1,65,000 | Stock | 1,80,000 | ||
| M | 1,07,000 | Fixed Assets | 2,20,000 | ||
| N | 1,08,000 | 3,80,000 | |||
| Total | 4,80,000 | Total | 4,80,000 | ||
Working note:
1. Goodwill
Profits of last four years:
−₹ 20,000 + ₹ 48,000 + ₹ 60,000 + ₹ 80,000 = ₹ 1,68,000
Average Profit:
`(1,68,000)/4 = 42,000`
Goodwill = 2 years’ purchase:
₹ 42,000 × 2 = ₹ 84,000
Gain/Sacrifice
Old ratio:
1 : 1 : 1
New ratio:
4 : 2 : 1
L gains:
`4/7 - 1/3 = (12 - 7)/21 = 5/21`
M sacrifices:
`1/3 - 2/7 = (7 - 6)/21 = 1/21`
N sacrifices:
`1/3 - 1/7 = (7 - 3)/21 = 4/21`
Goodwill adjustment:
`L = 84,000 xx 5/21 = 20,000` Dr.
`M = 84,000 xx 1/21 = 4,000` Cr.
`N = 84,000 xx 4/21 = 16,000` Cr.
2. Profit on Revaluation
Increase in provision:
₹ 2,000 loss
Stock appreciation:
₹ 1,80,000 × 20% = ₹ 36,000 gain
Fixed Assets depreciation:
₹ 2,20,000 × 10% = ₹ 22,000 loss
Reduction in Creditors:
₹ 58,000 − ₹ 49,000 = ₹ 9,000 gain
Profit on Revaluation:
₹ 36,000 + ₹ 9,000 − ₹ 2,000 − ₹ 22,000 = ₹ 21,000
3. Adjustment of Reserve + Revaluation Profit
Reserve and Surplus:
₹ 42,000
Add: Revaluation Profit:
₹ 21,000
Total:
₹ 42,000 + ₹ 21,000 = ₹ 63,000
Adjustment according to gain/sacrifice:
L: `63,000 xx 5/21 = 15,000` Dr.
M: `63,000 xx 1/21 = 3,000` Cr.
N: `63,000 xx 4/21 = 12,000` Cr.
