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36

INTERMEDIATE (IPC) EXAMINATION: MAY, 2016

Remaining Share = 1 1/5 = 4/5

As Share = 5/8 x 4/5 = 20/40 = 5/10
Bs Share = 3/8 x 4/5 = 12/40 = 3/10
New Profit sharing Ratio = 5:3:2
Gaining ratio = 5:3 (same as old profit sharing ratio among old partners)
Balance sheet of AB & Co. as on 31.3.2015
Liabilities

Assets

Capital Accounts:

Land & Buildings

5,32,000

6,00,000

Plant & Machinery

1,70,000

3,60,000

Less: Depreciation

25,500

2,40,000 12,00,000 Furniture

1,09,480

Bs Current A/c

68,062 Stock

Trade Creditors

54,800 Sundry Debtors

60,000

6,000 Less: Provision

3,000

Outstanding Repairs to Building

Cash at Bank
As current A/c
13,28,862

1,44,500
1,45,260
57,000
3,14,060
26,562
13,28,862

Working Note:
Required Balance of Capital Accounts
Cs Capital after writing off Goodwill = 2,72,000 32,000 = 2,40,000
Cs Share of Profit = 1/5
Thus Capital of the firm shall be = 2,40,000 x 5 = 12,00,000
As Capital = 12,00,000 x 5/10 = 6,00,000 and
Bs Capital = 12,00,000 x 3/10 = 3,60,000
16. Advantages of spreadsheet software as an accounting tool are:
1.

It is simple to use and easy to understand.

2.

Most of the common functions like doing calculations, setting formulas, macros,
replication of cell contents, etc. can be easily done in a spreadsheet.

3.

Grouping and regrouping of accounts can be done.

4.

Presentation can be made in various forms including graphical presentations like

bar diagram, histogram, pie-chart, etc.

5.

Basic protection like restricted access and password protection of cell can be used
to give security to the spread sheet data.

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