# Calculate the Capitals of All the Partners and Record the Necessary Journal Entries for Doing Adjustments in Respect of Capitals According to the Agreement Between the Partners? - Accountancy

Journal Entry

Pinky, Qumar and Roopa partners in a firm sharing profits and losses in the ratio of 3:2:1. S is admitted as a new partner for 1/4 share in the profits of the firm, whichs he gets 1/8 from Pinky, and 1/16 each from Qmar and Roopa. The total capital of the new firm after Seema’s admission will be Rs 2,40,000. Seema is required to bring in cash equal to 1/4 of the total capital of the new firm. The capitals of the old partners also have to be adjusted in proportion of their profit sharing ratio. The capitals of Pinky, Qumar and Roopa after all adjustments in respect of goodwill and revaluation of assets and liabilities have been made are Pinky Rs 80,000, Qumar Rs 30,000 and Roopa Rs 20,000. Calculate the capitals of all the partners and record the necessary journal entries for doing adjustments in respect of capitals according to the agreement between the partners?

#### Solution

1) Calculation of new profit sharing Ratio = Old Ratio − Sacrificing Ratio
Pinky = 3/6 - 1/8 = [ 12 -3 ]/24 = 9/24

Qumar = 2/6 - 1/16 = [ 16 -3 ]/48 = 13/48

Roopa = 1/6 - 1/16 = [ 8 - 3]/48 = 5/48

New profit sharing ratio between Pinky, Qumar, Roopa and Seema

9/24 : 13/48 : 5/48 : 1/4 = 18/48 : 13/48 : 5/48 : 12/48

= 18 : 13 : 5 : 12

2) Required capital of all partners in the new firm

Pinky's Capital = 2,40,000 x 18/48 = 90,000

Qumar's Capital = 2,40,000 x 13/48 = 65,000

Roopa's Capital = 2,40,000 x 5/48 = 25,000

Seema's Capital = 2,40,000 x 12/48 = 60,000

3) Amount to be brought by each partner

Pinky = 90,000 − 80,000 = 10,000

Qumar = 65,000 − 30,000 = 35,000

Roopa = 25,000 − 20,000 = 5,000

Seema = 2,40,000 x 1/4  =60,000

 Books of Pinky, Qumar, Roopa and Seema Journal Date Particularss L.F. Amount Rs Amount Rs Bank A/c Dr. 60,000 To Seema Capital A/c 60,000 (Seema bring her share of Capital for 1/4 th share of profit) Bank A/c Dr. 50,000 To Pinky’s Capital A/c 10,000 To Qumar’s Capital A/c 35,000 To Roopa’s Capital A/c 5,000 (Amount brought by Pinky, Qumar and Roopa to make capitalequal to their proportion)
Concept: Admission of a New Partner
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#### APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 3 Reconstitution of a Partnership Firm – Admission of a Partner
Exercise | Q 32 | Page 169