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प्रश्न
Vikas, Vishal and Vaibhav were partners in a firm sharing profits in the ratio of 2:2:1. The firm closes its books 31st March every year. On 31-12-2015 Vaibhav died. On that date his Capital account showed a credit balance of Rs. 3, 80,000 and Goodwill of the firm was valued at 1, 20,000. There was a debit balance of Rs. 50,000 in the profit and loss account. Vaibhav's share of profit in the year of his death was to be calculated on the basis of the average profit of last five years. The average profit of last five years was Rs. 75,000.
Pass necessary journal entries in the books of the firm on Vaibhav's death.
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उत्तर
Journal
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
|
Vikas’s Capital A/c Dr Vishal’s Capital A/c Dr To Vaibhav’s Capital A/c (Being adjustment of goodwill done in gaining ratio)
Vikas’s Capital A/c Dr Vishal’s Capital A/c Dr Vaibhav’s Capital A/c Dr To Profit and Loss A/c (Being debit balance in P & L written off among all partners in old ratio)
Profit and Loss Suspense A/c Dr To Vaibhav’s Capital A/c (Being Vaibhav’s share of profit up to date of death dispensed through P&L Suspense A/c)
Vaibhav’s Capital A/c Dr To Vaibhav’s Executor A/c (Being amount due to Vaibhav transferred to his Executor A/c) |
12,000 12,000
20,000 20,000 10,000
11,250
4,05,250
|
24,000
50,000
11,250
4,05,250
|
Working Notes:
WN 1: Calculation of Vaibhav’s Share of Goodwill
Vaibhav's Share of Goodwill = Firm's Goodwill x His Profit Share
= 1,20,000 x (1/5)
= 24,000
24,000 will be borne by gaining partners in gaining ratio
Since, nothing is specified; it is assumed that continuing partners gain in their old profit sharing ratio of 2:2
Vikas's gain = 24,000 x (2/4) = 12,000
Vishal's gain = 24,000 x (2/4) = 12,000
WN 2 : Calculation of Share of Debit balance in P&L A/c
Vikas's Share = 50,000 x (2/5) = 20,000
Vishal's Share = 50,000 x (2/5) = 20,000
Vaibhav's Share = 50,000 x (1/5) = 10,000
WN 3 : Calculation of Share in Profit (earned during the year)
Vaibhav's Share = Average Profits x Number of Months Vaibhav Remained x His Profit Share
= 75,000 x (9/12) x (1/5) = 11,250
WN 4 : Calculation of Amount transferred to Vaibhav's Executor A/c
Amount due to Vaibhav = Capital + Credit Items - Debit Items
= 3,80,000 + 24,000 - 10,000 + 11,250
= 4,05,250
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संबंधित प्रश्न
Kumar, Gupta and Kavita were partners in the firm sharing profits and losses equally. The firm was engaged in the storage and distribution of canned juice and its godowns were located at three different places in the city. Each godown was being managed individually by Kumar, Gupta and Kavita. Because of increase in business activities at the godown managed by Gupta, he had devoted more time. Gupta demanded that his share in the profits of the firm be increased, to which Kumar and Kavita agreed. The new profit sharing ratio was agreed to be 1: 2: 1. For this purpose, the goodwill of the firm was valued at two years purchase of the average profits of last five years. The profits of the last five years were as follows :
| Years |
Profit Rs |
|
| I | 4,00,000 | |
| II | 4,80,000 | |
| II | 7,33,000 | |
| IV | Loss | 33,000 |
| V | 2,20,000 |
You are required to:
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| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Bills Payable Agarwal's Loan Capitals Joshi 2,10,000 Pandey 2,04,000 |
51,000 36,000 84,000
4,14,000 |
Cash Debtors Bills payable Furniture Machinery Agarwal’s Capital |
24,000 39,000 27,000 81,000 3,75,000 39,000 |
| 5,85,000 | 5,85,000 |
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40,000 (Profit) |
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30,000 (Loss) |
50,000 (Profit) |
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