can anyone answer this ?
Dear student
REVALUATION A/C
A's capital account
WORKING NOTE:
1. Profit and loss suspense A/C =
2. share of goodwill:
3. Gaining ratio: new ratio - old ratio
B =
C =
B:C = 3:2
4. Interest on capital =
Regards
REVALUATION A/C
PARTICULAR | AMOUNT | PARTICULAR | AMOUNT |
To patient A/C | 3,000 | By building A/C | 5,000 |
To machinery A/C | 2,000 | ||
5,000 | 5,000 |
A's capital account
Particular | amount | particular | amount |
To drawings | 40,000 | By balance B/D | 30,000 |
To interest on drawings | 1,800 | By loan A/C | 20,000 |
To goodwill | 8,333 | By profit and loss suspense A/C | 4,167 |
To A' s executor A/C | 25,784 | By B | 11,250 |
By C | 7,500 | ||
By interest on capital | 1,500 | ||
By reserves | 1,500 | ||
75,917 | 75,917 | ||
WORKING NOTE:
1. Profit and loss suspense A/C =
2. share of goodwill:
3. Gaining ratio: new ratio - old ratio
B =
C =
B:C = 3:2
4. Interest on capital =
Regards