Dany, Johny and Shony are in partnership, sharing profits in the proportion of 4:3:3 respectively. The partnership agreement states that the goodwill of the firm shall be equal to three times of the average profits of the four years to the date of change. No goodwill account is to be maintained in the books. Prots of the firm have been:
2001 – 12,000
2002 – 9,000
2003 – 15,000
2004 – 16,000
Glady was admitted in to the partnership on 1-01-2005 and the new profit sharing ratios were : Dany 3/10, Johny 3/10, Shony 2/10, and Gladyio 2/10.
Glady brought in to the partnership a Capital of 30,000. The Capital account balances of the old partners on 01-01-2005, were:
Dany ₹ 40,000
Johny ₹ 40,000
Shony ₹ 30,000
You are required to show the Capital accounts of the partners after the admission of Glady.
