Question

Aman, Govind and Guru shared profits 3 : 2 : 1. Sudarshan admitted for \( \frac{1}{4} \) share. New ratio = 9 : 5 : 4 : 6. Total capital of new firm = ₹ 3,60,000. Sudarshan brings \( \frac{1}{4} \) of total as capital. Capitals of Aman, Govind and Guru adjusted accordingly. New capitals of Aman, Govind and Guru were ₹ 60,000, ₹ 80,000 and ₹ 45,000 respectively. Calculate the new capitals and pass necessary journal entries.

Hint:

Calculate new capitals by multiplying new ratio × total capital, then adjust via cash brought in or withdrawn.

Answer 1

Sudarshan's Capital Calculation: ₹ 3,60,000 multiplied by 1/4 equals ₹ 90,000.

Remaining Capital: ₹ 3,60,000 minus ₹ 90,000 results in ₹ 2,70,000.

Distribution of Remaining Capital (Ratio 9:5:4):
- Aman's Share: (9/18) of ₹ 2,70,000 = ₹ 1,35,000
- Govind's Share: (5/18) of ₹ 2,70,000 = ₹ 75,000
- Guru's Share: (4/18) of ₹ 2,70,000 = ₹ 60,000

Capital Adjustments:
- Aman contributed an additional ₹ 75,000 (previous balance ₹ 60,000).
- Govind withdrew ₹ 5,000 (previous balance ₹ 80,000).
- Guru contributed an additional ₹ 15,000 (previous balance ₹ 45,000).

Journal Entries:

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c    To Sudarshan’s Capital A/c (Capital introduced by Sudarshan)	90,000	90,000
Bank A/c     To Aman’s Capital A/c     To Guru’s Capital A/c (Cash injected for capital adjustments)	90,000	75,000 15,000
Govind’s Capital A/c     To Bank A/c (Excess capital withdrawn by Govind)	5,000	5,000