Practical Problem 01

IN THE BOOKS OF NEW FIRM
Dr Profit and Loss Adjustment Account Cr
Particular	Amt	Amt	Particular	Amt	Amt
To Furniture		300	By Land and Building		7,500
To Debtor		4,350	By Stock		7,500
To Profit on Revaluation
Vikram Capital A/c	4,140
Pradnya Capital A/c	6,210	10,350




		15,000			15,000

Dr Partner’s Capital Account Cr
Particular	Vikram	Pradnya	Avani	Particular	Vikram	Pradnya	Avani
				By bal b/d	75,000	75,000
				By Cash			37,500
To Loan A/c	46,140	31,170		By Goodwill A/c	12,000	18,000
To bal c/d	45,000	67,500	37,500	By P & L Adj A/c	4,140	6,210

	91,140	99,210	37,500		91,140	99,210	37,500

Balance sheet of New Firm as on 1st April 2018
Liabilities	Amt	Amt	Asset	Amt	Amt
Capital A/c			Land and building	37,500
Vikran	45,000		Add: Appreciation	7,500	45,000
Pradnya	67,500		Plant		45,000
Avani	37,500	1,50,000	Furniture	3,000
			Less: Depreciation	-300	2,700
Creditors		1,05,000	stock	75,000
			Add: Appreciation	7,500	82,500
Loan A/c			Debtor	87,000
Vikran	46,140		Less: R.D.D@ 5%	-4350	82,650
Pradnya	31,710	77,850	Cash		75,000
		3,32,850			3,32,850

Working

OlD Rato = 2 : 3

New Partner Share 1/4th

Balance of One = 1 – New Partner Share

= 1 – 1/4th

= 3/4th

New Ratio = Old Ratio X Balance of 1

Vikram = 2/5 x 3/4 = 6/20

Pradnya = 3/5 x 3/4 = 9/20

Avani = 1/4 x 5/5 = 5/20 (Making Denominator Equal)

New Ratio : 6 : 9 : 5