Question : Krishna and Suresh were partners in a firm sharing profits in the ratio of 3: 1. With a capital of Rs 3,00,000 and Rs 2,00,000. On 1st April, 2015 they admitted Rahul as a new partner for 1/5 th share in profits of the firm. On the date of Rahul's admission the Balance Sheet of Krishna and Suresh showed a General Reserve of Rs. 1,20,000, a debit balance of Rs.60,000 in Profit and Loss A/c and Workmen Compensation Reserve of Rs. 1,50,000.
The following was agreed upon on Rahul's admission :
(i) Rahul will bring Rs. 1,50,000 as his capital and his share of goodwill premium in cash.
(ii) Goodwill of the firm be valued at Rs.2,40,000.
(iii) There was a claim of Workmen Compensation for Rs. 1,70,000,
(iii) The partners decided to share future profits in the ratio of 3: 1: 1.
The balance of partners capital after all adjustment and after admitted new partners will be
Option 1: Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000
Option 2: Krishna's capital account Rs 3,06,000 and Suresh Rs 2,02,000 Rahul Rs 1,50,000
Option 3: K's capital Rs 4,26,000 and Suresh Rs 3,42,000 and Rahul Rs 1,50,000
Option 4: None of the above
Correct Answer: Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000
Solution : Answer = Krishna's capital Rs 3,66,000 and Suresh 2,22,000 and Rahul Rs 1,50,000
Krishna | Suresh | Rahul | Krishna | Suresh | Rahul | ||
Profit and loss(3:1) | 45000 | 15000 | - | By Bal. B/D | 3,00,000 | 2,00,000 | - |
Revaluation (loss) | 15000 | 5000 | - | Reserve | 90000 | 30000 | |
Cash | - | - | 1,50000 | ||||
To Bal C/d | 3,66,000 | 2,22000 | 1,50,000 | Premium for Goodwill | 36000 | 12000 | |
4,26,000 | 2,42,000 | 1,50,000 | 4,26000 | 242000 | 1,50,000 |
Total Goodwill = 2,40,000
Rahul's Share = 240000 x 1/5 = 48000
Hence, the correct option is 1.