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Question 57 Chapter 5 of +2-Part-1
57. (Capital to be adjusted on basis of NPS) Sun and Moon are partners in a firm sharing profits in 2:1 ratio with capital of Rs. 1,00,000 and Rs. 75,000 respectively. Planet was admitted for 1/4 share in profits. He brought capital Rs. 50,000 and goodwill Rs. 15,000. Half the amount of goodwill was withdrawn by old partners. The capital of the partners was to be arranged in profit sharing ratio on the basis of Planet's capital and excess or deficit is to be adjusted in cash. Calculate the amount to paid or to be received from partners based on above arrangement.
We are providing a solution of Question 57 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:
The video consists solution of question numbers from 55 to 57 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 57 from the following video by using time stamps of the video.
Calculation of new profit share ratio
Assuming total profits of the firm = 1
| Share of profit acquired by Planet | = | 1 |
| 4 |
| Remaining share (Joint share of Sun & Moon) | = | 1 | - | 1 |
| 4 | ||||
| = | 3 | |||
| 4 |
Old Ratio = 2:1
| Sun‘s new share | = | 3 | x | 2 |
| 4 | 3 | |||
| = | 6 | |||
| 12 |
| Moon‘s new share | = | 3 | x | 1 |
| 4 | 3 | |||
| = | 3 | |||
| 12 |
| C’s share | = | 1 | or | 3 |
| 4 | 12 |
New profit sharing ratio = 2 : 1 : 1
Calculation of Calculation of New Capital of all partners:
Total Capital of Firm = Capital of new firm X Reverse share of new partner
| Planet’s capital for | 1 | th capital is Rs. 50,000 |
| 4 |
Total Capital of the firm = 50,000X 4 = Rs. 2,00,000
Calculation of New Capital of all partners
= Total capital of new firm X New share of partners
| Sun’s Capital = | = | 2,00,000 | x | 2 |
| 4 | ||||
| = | Rs. 1,00,000 |
| Moon’s Capital = | = | 2,00,000 | x | 1 |
| 4 | ||||
| = | 50000 |
Calculation of Adjusted capital of old partners
| Sun | Moon | ||
| Capital as per the statement | = | 1,00,000 | 75,000 |
| Add: share of Planet’s goodwill | 10,000 | 5,000 | |
| 1,10,000 | 80,000 | ||
| Fewer withdrawals of Goodwill | = | 5,000 | 2,500 |
| Adjusted capital of the firm | = | 1,05,000 | 77,500 |
| Capital required the new firm | = | 1,00,000 | 50,000 |
| Amount to be withdrawn | = | 5,000 | 27,500 |
Calculate deficiency or surplus = New capital - Adjusted capital
Sun‘s deficiency or surplus = ₹ 1,00,000 - ₹ 1,05,000 = ₹ 5,000 Surplus
B‘s deficiency or surplus = ₹ 50,000 - ₹ 77,500 = ₹ 27,500 Surplus
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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