Piecemeal Distribution of Cash

how to calculate Surplus capital

1. Piecemeal Distribution of Cash under Surplus Capital Method

2. Steps to solve the problem Calculate Surplus Capital Prepare Statement of Piecemeal Distribution

3. How to Calculate Surplus Capital?

4. A, B & C are partners sharing profits and losses in the ratio of 1:1:1. Their capitals are Rs. 1,20,000, Rs. 1,50,000 and Rs. 2,00,000 respectively. Calculate Surplus Capital First Surplus ‘C’ Rs. 125000 Second Surplus ‘B’ & ‘C’ Rs. 30000 & 140000 Respectively Particulars A(2) B(2) C(1) Balance as per the Balance Sheet 120000 150000 200000 Taking Capital of ‘A’ as base (Rs. 60000) 120000 120000 60000 Balance 30000 140000 Taking Capital of ‘B’ as base (Rs.15000) 30000 15000 Balance 125000

5. A, B & C are partners sharing profits and losses equally. Their capitals are Rs. 20,000, Rs. 50,000 and Rs. 60,000 respectively. Calculate Surplus Capital. Statement Showing Surplus Capital Particulars A (1/3) B (1/3) C (1/3) Balance as per Balance Sheet 20000 50000 60000 Taking the capital of ‘A’ as Base 20000 20000 20000 Balance 30000 40000 Taking the capital of ‘B’ as base 30000 30000 Balance 10000 First Surplus ‘C’ Rs. 10000 Second Surplus ‘B’ & ‘C’ Rs. 30000 & 40000 Res.

6. A, B & C are partners sharing profits and losses in the ratio of 3:2:1. Their capitals are Rs. 30,000, Rs. 50,000 and Rs. 60,000 respectively. Calculate Surplus Capital. Statement Showing Surplus Capital Particulars A (3) B (2) C (1) Balance as per Balance Sheet 30000 50000 60000 Taking the capital of ‘A’ as Base (Rs. 10000) 30000 20000 10000 Balance 30000 50000 Taking the capital of ‘B’ as base (Rs.15000) 30000 15000 Balance 35000 First Surplus ‘C’ Rs. 35000 Second Surplus ‘B’ & ‘C’ Rs. 30000 & 50000 respectively

7. A, B & C are partners sharing profits and losses in the ratio of 3:2:2. Their capitals are Rs. 1,20,000, Rs. 50,000 and Rs. 20,000 respectively. General Reserve is Rs. 70,000 on the date of dissolution. Calculate Surplus Capital. STATEMENT SHOWING SURPLUS CAPITAL Particulars A( 3 ) B(2) C(2) Balance as per Balance Sheet 120000 50000 20000 Add: General Reserve 30000 20000 20000 Total of Capital 150000 70000 40000 Taking the capital of ‘C’ as Base (Rs.20000) 60000 40000 40000 Balance 90000 30000 Taking the capital of ‘B’ as base (Rs.15000) 45000 30000 Balance 45000 First Surplus ‘A’ Rs. 45000 Second Surplus ‘A’ & ‘B Rs. 90000 & 30000 Respectively

8. A, B & C are partners sharing profits and losses in the ratio of 5:3:2. Their capitals are Rs. 1,20,000, Rs. 60,000 and Rs. 20,000 respectively. The Balance Sheet showed a Loss of Rs. 40,000 on the date of dissolution. Calculate Surplus Capital. First Surplus - ‘A’ Rs. 20000 Second Surplus – A & B Rs. 70000 & 30000 respectively Particulars A(5) B(3) C(2) Balance as per Balance Sheet 1,20,000 60,000 20,000 Less: Loss (Distributed in PSR) 20000 12000 8000 Balance 100000 48000 12000 Taking Base of ‘C’ (Rs.6000) 30000 18000 12000 Balance 70000 30000 Taking the Base of ‘B’ (Rs.10000) 50000 30000 Balance 20000

9. A, B & C are partners sharing profits and losses equally. Their capitals are Rs. 500000, Rs. 200000 and Rs. 300000 respectively. Profit & Loss account showed a credit balance of Rs. 60000 on the date of dissolution. Calculate Surplus Capital. Statement Showing Surplus Capital Particulars A ( 1) B(1) C(1) Balance as per Balance Sheet 500000 200000 300000 Add : Credit balance of P & L Account 20000 20000 20000 Balance 520000 220000 320000 Taking the capital of ‘B’ as Base 220000 220000 220000 Balance 300000 100000 Taking the capital of ‘C’ as base 100000 100000 Balance 200000 First Surplus ‘A’ Rs. 200000 Second Surplus ‘A’ & ‘C’ Rs. 300000 & 100000 Respectively

10. A, B & C are partners sharing profits and losses equally. Their capitals are Rs. 20,000, Rs. 50,000 and Rs. 60,000 respectively. Calculate Surplus Capital Statement Showing Surplus Capital First Surplus ‘C’ Rs. 10000 Second Surplus ‘B’ & ‘C’ Rs. 30000 & 40000 RESPECTIVELY Particulars A (1/3) B (1/3) C (1/3) Balance as per Balance Sheet 20000 50000 60000 Taking the capital of ‘A’ as Base 20000 20000 20000 Balance 30000 40000 Taking the capital of ‘B’ as base 30000 30000 Balance 10000

11. A, B & C are partners sharing profits and losses in the ratio of 2:2:1. Their capitals are Rs. 1,20,000, Rs. 1,50,000 and Rs. 2,00,000 respectively. The Profit & Loss account showed a credit balance of Rs. 50000. Calculate Surplus Capital First Surplus ‘C’ Rs. 125000 Second Surplus ‘B’ & ‘C’ Rs. 30000 & 140000 Respectively Particulars A(2) B(2) C(1) Balance as per the Balance Sheet 120000 150000 200000 Add: P&L A/c in PSR 20000 20000 10000 New Balance 140000 170000 210000 Taking Capital of ‘A’ as base (Rs. 70000) 140000 140000 70000 Balance 30000 140000 Taking Capital of ‘B’ as base (Rs.15000) 30000 15000 Balance 125000

12. A, B & C are partners sharing profits and losses in the ratio of 1:2:3. Their capitals are Rs. 1,00,000, Rs. 50,000 and Rs. 60,000 respectively. The Profit & Loss account showed a credit balance of Rs. 60000. Calculate Surplus Capital First Surplus ‘A’ Rs. 75000 Second Surplus ‘A’ & ‘B’ Rs. 80000 & 10000 Respectively Particulars A(1) B(2) C(3) Balance as per the Balance Sheet 100000 50000 60000 Add: P&L A/c in PSR 10000 20000 30000 New Balance 110000 70000 90000 Taking Capital of ‘C’ as base (Rs. 30000) 30000 60000 90000 Balance 80000 10000 NIL Taking Capital of ‘B’ as base (Rs.5000) 5000 10000 NIL Balance 75000 NIL NIL

13. Practice Sum # 1 Name of the Partners P, Q & R Capital Balances INR 50000, 80000 & 90000 Profit sharing ratio 1:2:3 General Reserve 120000

14. STATEMENT SHOWING SURPLUS CAPITAL Particulars P- 1 Q- 2 R-3 Balance as per the Balance Sheet 50000 80000 90000 Add : General Reserve Rs. 120000 20000 40000 60000 Total Capital 70000 120000 150000 Taking the capital of ‘R’ as base (Rs. 50000) 50000 100000 150000 Balance 20000 20000 Taking the capital of ‘Q’ as Base 10000 20000 Balance 10000 1 st Surplus – P Rs. 10000 2 nd Surplus P & Q Rs. 20000 each

15. Thank you Dr. Yashodhan Mithare Professor (Commerce) H.V. Desai College, Pune 411002 [email protected]