967 2018 2018 Jun 30 To Drawings Alc 30,000 20,000 25,000 Jan. 1 By Balance bid 3,00,000 3,15,000 2,00,000 To Balance cld 3,50,000 3,35,000 2,15,000 Jun 30 By Share of Profit Alc 80,000 40,000 40,000 3,80,000 3,55,000 2,40,000 3,80,000 3,55,000 2,40,000 Working Notes: (1) Statement Showing the Required Adjustment for Goodwill Particulars A() BR) C() DR) Right of goodwill before retirement (3:2:1) 3,00,000 2,00,000 1,00,000 Right of goodwill after admission (2:1:1) 3,00,000 1,50,000 1,50.000 Sacrifice (-) / Gain (+) (-) 3,00,000 (+) 1,00,000 (+) 50,000 (+) 1,50,000 Therefore, entire premium for goodwill will go in favour of A. Also, B and Care to pay A 1,00,000 and 50,000 respectively. (2) Adjusted Profit for Distribution Particulars 1.7.2017 to 1.1.2018 to 31.12.2017 30.6.2018 Profit divided equally 2,00,000 2,00,000 Less: Bad Debts 50,000 Interest on Loan of A@ 10% p.a. on 8,00,000 for 6 months (See Partners' Capital A/cs) 40,000 Adjusted Profit for Distribution 1,50,000 1,60,000 Illustration 48 A, B and Care in partnership, compiling their accounts to 30th September each year and sharing profits in the ratio of 3:2:1. The summarised partnership Balance Sheet at 30th September, 2017 is shown below: Liabilities Assets Capitals 6,00,000 Sundry Net Assets 16,00,000 B 6,00,000 4,00,000 16,00,000 16,00,000 In the year ended 30th September 2018, the following events took place : (1) On 31.3.2018, A retired. In settling the amount due to him, goodwill was valued at 6,00,000, and a plot of land owned by the partnership was revalued upwards by 21,20,000. The balance due to A remained in the partnership as a loan, carrying no interest. B and C continued the partnership business from 1.4.2018, sharing profits in the ratio of 2 : 1 (2) On 1.7.2018, D joined the partnership and from this date the profit sharing ratio became 2:1:1. D brought in 3,00,000 as capital, plus a further 1,50,000 for a one quarter share of the goodwill valued at this date at 6,00,000 The total profit for the year ended 30.9.2018 was 26,00,000. The following basis of allocating the profit was agreed: (a) A bad tof 30,000 charged in arriving at the profit of 6,00,000 should be related to the six months ended 31.3.2018 (b) Apart from the above adjustment, the profit should be divided - 6 months ended 31.3.2018 - 60%. 3 months ended 30.6.2018 - 20% 3 months ended 30.9.2018 - 20% The partners' drawings for the year were all figures in ) : Partners A B D 6 months ended 31.3.2018 50,000 40,000 30,000 3 months ended 30.6.2018 30,000 30,000 3 months ended 30.9.2018 40,000 30,000 25,000 You are required to prepare a Profit and Loss Appropriation Account for the year ended 30.9.2018. Also prepare the Partners' Capital Accounts. debe