Question

Shailesh, Anil and Das were partners sharing profits and losses in the ratio at 3:3:2. Their Balance Sheet as on 31.3.2012 is as below:

Balance Sheet as on 31^st March, 2012

In 1^st April, 2012 Mr. Das retired from the firm on following terms:

1) Shailesh and Anil’s share in reserve fund should be continued in new firm.

2) Goodwill of the firm is to be valued at Rs 4,000 however only Das’s share in it is to be raised in the books and written off immediately

3) Assets to be revalued as under stock Rs 6,300 machinery Rs 10,000 furniture Rs 10,200

4) R.D.D. to be maintained at 10% on debtors

5) Rs 100 to be written off from creditors

6) The amount payable to Mr. Das is to be transferred to his loan account

Prepare:- Profit and Loss adjustment A/c, Partners capital A/c and Balance Sheet of New firm on 1/04/2012

Answer 1

Profit and Loss Adjustment Account

Partners’ Capital Accounts

Balance Sheet

as on April 01, 2012 after Mr. Das’s retirement

Working Notes:

WN 1: Calculation of Gaining Ratio

New profit sharing ratio of shailesh and Anil = 3 : 3 = 1 : 1

Gaining Ratio = New Ratio - old Ratio