Answer 1

Books of Ashish, Dutta and Vimal Journal
Date	Particularss			L.F.	Amount Rs	Amount Rs
2016
Jan 1	Land and Building A/c		Dr.		15,000
	Plant A/c		Dr.		10,000
		To Revaluation A/c				25,000
	(Increased in the value of assets)
	Revaluation A/c		Dr.		25,000
		To Ashish’s Capital A/c				15,000
		To Dutta’s Capital A/c				10,000
	(Profit on revaluation transferred to partners capital account)
	Cash A/c		Dr.		36,000
		To Vimal Capital A/c				36,000
	(Capital brought by Vimal)
	Vimal’s Current A/c		Dr.		4,000
		To Ashish’s Capital A/c				2,400
		To Dutta’s Capital A/c				1,600
	(Vimal’s share goodwill adjusted through his current account)

  

Balance Sheet as on January 01, 2016
Liabilities	Amount Rs	Assets		Amount Rs
Creditors	15,000	Land and Building		50,000
Bills Payable	10,000	Plant		55,000
		Debtors	22,000
Ashish’s Capital Account	97,400	Less: Provision	2,000	20,000
Dutta’s Capital Account	46,600	Stock		35,000
Vimal’s Capital Account	36,000	Cash		41,000
		Vimal’s Current Account		4,000
	2,05,000			2,05,000

Working Note:  1)

Partners’ Capital Account
Dr.					Cr.
Particulars	Ashish	Dutta	Vimal	Particulars		Ashish	Dutta	Vimal
				Balance b/d		80,000	35,000
				Revaluation		15,000	10,000
Balance c/d	97,400	46,600	36,000	Cash				36,000
				Vimal Current		2,400	1,600
	97,400	46,600	36,000			97,400	46,600	36,000

2)

Vimal Current Account
Dr.		Cr.
Particulars	Amount Rs	Particulars		Amount Rs
Ashish’s Capital A/c	2,400
Dutta’s Capital A/c	1,600	Balance c/d		4,000
	4,000			4,000

3) Calculation of New Profit Sharing Ratio
Vimal's Share = `1/5`

Remaining Share of Firm = 1 - `1/5 = 4/5`

Ashish's share in the new firm = `3/5 xx 4/5 = 12/25`

Dutta's share in the new firm = `2/5 xx 4/5 = 8/25`

New Profit sharing ratio of Ashish, Dutta and Vimal

= `12/25 : 8/25 : 1/5 or 12/25 : 8/25 : 5/25 or 12 : 8 : 5`

4) Sacrificing Ratio = Old Ratio – New Ratio

Ashish’s Sacrificing Share = `3/5 - 12/25 = [ 15 -12]/25 = 3/25`

Dutta’s Sacrificing Share = `2/5 - 8/25 = [ 10 - 8 ]/25 = 2/25`

Sacrificing Ratio between Ashish and Dutta is 3:2

Note: Here, Goodwill has been adjusted through current account because Vimal has not brought his share of goodwill and he is to bring capital in proportion to total capital of the new firm after adjustment.

5) Capital of new firm on the basis of old partners adjusted capital:
Total adjusted capital of old partners

Ashish’s Capital	=	97,400
Dutta’s Capital	=	46,600
		1,44,000

Remaining Share of Ashish and Dutta (old partners) in the new firm = `4/5`

Capital of the new firm = 1,44,000 ×`5/4` =1,80,000

Vimal’s share in the capital of the new firm = 1,80,000 x `1/5` = 36,000.