Samiksha, Arshiya and Divya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2022, they agreed to share profits and losses in the ratio of 2 : 5 : 3.
Samiksha, Arshiya and Divya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2022, they agreed to share profits and losses in the ratio of 2 : 5 : 3. Their Balance Sheet showed a debit balance of ₹ 50,000 in the Profit and Loss Account and a balance of ₹ 40,000 in the Investments Fluctuation Fund. The Market value of an investment is ₹ 30,000 against the book value of ₹ 50,000. Partners have decided not to show values in the Balance Sheet and to pass an adjusting entry for it.
Which of the following is the correct treatment of the above?
a)
Samiksha’s Capital a/c Dr. ₹ 9,000
To Arshiya’s Capital A/c ₹ 6,000
To Divya’s Capital A/c ₹ 3,000
b)
Arshiya’s Capital A/c Dr. ₹ 5,000
To Samiksha’s Capital A/c ₹ 2,000
To Divya’s Capital A/c ₹ ₹ 3,000
c)
Arshiya’s Capital a/c Dr. ₹ 6,000
Divya’s capital a/c Dr. ₹ 3,000
To Samiksha’s Capital A/c ₹ 9,000
Anurag Pathak Changed status to publish March 17, 2024
Ans – a)
solution;-
Calculation of Net Accumulated Profit or Loss
Profit & Loss A/c (Dr) = ₹ 50,000
Net Investment Fluctuation Fund = 40,000 – 20,000 = ₹ 20,000
Net Accumulated Loss = 50,000 – 20,000 = ₹ 30,000
Calculation of sacrifice/gain of partners
Old Ratio = 5 : 3 : 2
New Ratio = 2 : 5 : 3
Samiksha = 5/10 – 2/10 = 5 – 2/10 = 3/10 (Sacrifice)
Arshiya = 3/10 – 5/10 = 3 – 5/10 = – 2/10 (gain)
Divya = 2/10 – 3/10 = 2 – 3/10 = – 1/10 (gain)m
Calculation of partner’s share in accumulated loss
Samiksha = 30,000 × 3/10 = ₹ 9,000 (Debit)
Arshiya = 30,000 × 2/10 = ₹ 6,000 (Credit)
Divya = 30,000 × 1/10 = ₹ 3,000 (Credit)
Journal Entry
Samiksha’s Capital A/c Dr. 9,000
To Arshiya’s Capital A/c 6,000
To Divya’s Capital A/c 3,000
Note:-
Adjusting entry of accumulated loss is:
Sacrificing Partner’s Capital A/c Dr.
To Gaining Partner’s Capital A/c
In the case of Accumulated profit, Adjusting entry is:
Gaining Partner’s Capital A/c Dr.
To Sacrificing Partner’s Capital A/c
Anurag Pathak Changed status to publish March 17, 2024
