Question

Ravi, Vijay and Sujay were partners sharing profits in the ratio of `1/2 : 1/3 : 1/6`.

Vijay decided to retire, his share being taken up by the remaining partners in the ratio 1 : 4.

On Vijay’s retirement, a loss of ₹ 12,000 was determined upon revaluation of assets and liabilities.

You are required to:

1. Calculate the new profit-sharing ratio of the remaining partners.
2. Pass the journal entry to write off the loss on revaluation of assets and liabilities.

Answer 1

(a) (i) Calculation of New profit sharing ratio:

Old Ratio -

Ravi	Vijay	Sujay
`1/2`	`1/3`	`1/6`

∴ Old Ratio = 3 : 2 : 1

Vijay gives his share to the remaining partner in the ratio of 1 : 4

Ravi gets from Vijay `= 2/6 xx 1/5 = 2/30`

Ravi's new share = `3/6 + 2/30 = 17/30`

Sujay gets from Vijay = `2/6 xx 4/5 = 8/30`

Sujay's new share = `1/6 + 8/30 = 13/30`

New Profit Sharing Ratio = Ravi : Sujay

`= 17/30 : 13/30` = 17 : 13

(b) 

Journal Entries
Date	Particulars	Amount (₹)	Amount (₹)
	Ravi's Capital A/c          Dr. Vijay's Capital A/c         Dr. Sujay's Capital A/c        Dr.        To Realisation A/c (Being Revaluation Account loss transferred to partner's capital A/c in their old ratio)	6,000 4,000 2,000	12,000