The Balance sheet of Himanshu, Pranav and Tushar who were sharing profits in proportion to their capital stood as follows:
| Balance Sheet as on 31 March 2022 |
|||
| Liabilities | Rs | Assets | Rs |
| Sundry Creditors | 25,000 | Land and Building | 35,000 |
| Investment Fluctuation Fund | 5,000 | Machinery | 45,500 |
| Bills Payable | 10,000 | Stock | 13,000 |
|
Capital: |
70,000 | Debtors | 6,000 |
| Investment | 5,000 | ||
| Bank | 4,000 | ||
| Profit and loss A/c | 1,500 | ||
| 1,10,000 | 1,10,000 | ||
Addition Information:
(a) On 1st April 2022, they admitted Rachit into partnership for 1/6th share in future profit.
(b) Rachit will bring ₹25,000 for capital and ₹15,000 for goodwill.
(c) A provision for doubtful debts of 7% was to be made.
(d) Land and building is to be appreciated to 120%.
(e) Machinery is decreased by ₹1,500.
On the basis of above case give answer to question:
Determine the amount compensated by Rachit to Pranav.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹4,500.
Old ratio between old partners is capital ratio which means 35000:21000:14000
= 5:3:2
Rachit share = 1/6
Total share = 1
Remaining share = 1- 1/6
=5/6
This 5/6 share is distributed between old partners in old ratio to know their new share
Himanshu = 5/6 X 5/10
= 25/60
Parnav = 5/6 X 3/10
= 15/60
Tushar = 5/6 X 2/10
= 10/60
NEW RATIO = 25/60 :15/60:10/60:1/6
= 25/60 :15/60:10/60:10/60
= 25:15:10:10 or 5:3:2:2
Sacrificing ratio= Old share - new share
Himanshu sacrifice = 5/10-5/12
= (30-25)/60
= 5/60
Parnav sacrifice = 3/10 - 3/12
= (18-15)/60
= 3/60
Tushar sacrifice = 2/10 - 2/12
= (12-10)/60
= 2/60
Scarificing ratio = 5/60:3/60:2/60
= 5:3:2
Rachit compensate Parnav for 3/10
Goodwill brought by Rachit = 15,000
Parnav share in Rachit goodwill = 15,000 x 3/10
= 4,500