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Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows:

Liabilities Assets
Capital A/cs:

Ram

Mohan

Sohan

Hari

Workmen Compensation Reserve

4,00,000

4,50,000

2,50,000

2,00,000

1,20,000

Fixed Assets

Current Assets

 

9,00,000

5,20,000

14,20,000 14,20,000

From the above date, the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purpose the goodwill of the firm was valued at ₹ 1,80,000. The partners also agreed for the following:

a) The claim for workmen’s compensation has been estimated at ₹ 1,50,000.

b) Adjust the capital of the partners according to the new profit-sharing ratio by opening partners’ current accounts.

Prepare the Revaluation Account, Partner’s Capital Accounts, and the Balance Sheet of the reconstituted firm.

Anurag Pathak Changed status to publish May 2, 2023
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