Question

R, S and T were partners in a firm sharing profits in the ratio of 4 : 3 : 3. T died on 1st August, 2024 and goodwill was valued at ₹ 7,50,000 on that day. Adjustment entry for goodwill was passed as follows:

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
			₹	₹
	R’s Capital A/c      ...Dr.		1,50,000
	S’s Capital A/c      ...Dr.		75,000
	To T’s Capital A/c			2,25,000
	(Share of goodwill of T adjusted)

Gain on revaluation of assets and reassessment of liabilities credited to T’s account was ₹ 45,000.

Calculate new profit sharing ratio and total amount of gain (profit) on revaluation of assets and reassessment of liabilities.

Answer 1

1. Calculation of new profit sharing ratio:

R and S will share T’s share of profit in the ratio of ₹ 1,50,000 : ₹ 75,000

= 2 : 1

As such, new profit sharing ratios of R and S will be:

R gets `2/3"th of T’s share of"  3/10 = 2/3xx3/10=6/30`

R’s old share = `4/10`

∴ R’s new share = `4/10+6/30=(120+60)/300=180/300=3/5`

S gets `1/3 "th of T’s share of"  3/10=1/3xx3/10=3/30`

S’s old share = `3/10`

∴ S’s new share = `3/30+3/10=(90+30)/300=120/300=2/5`

Hence, New ratio between R and S = `3/5:2/5` = 3 : 2

2. Total loss on revaluation of assets and reassessment of liabilities

= ₹ `45,000xx10/3`

= ₹ 1,50,000