Show the solution of question 30 and what amount of x's and y's capital in new balance sheet and how ...?
Q 30. Balance Sheet of X and Y, who shares profits and losses as 5 : 3, as at 1st April, 2017 is :
Dear Student
For finding capital we have followed the following procedures :
Firstly we had found the revaluation profits by making necessary adjustments given in the question , Then after finfing Revaluation profits we transfered them to X and Y's capital accounts ,
So our job for revaluation was completed . Now we had done the goodwill adjustment in sacrificing and gaining ratio between X and Y and passed the necessary journal entries as shown above .
After this we had transferred all the accumulated profits and losses of the old balancesheet in the Capital account of partners in Old ratio .
The resultant balance is the closing balance of Partners .
Hope this helps
Keep posting
Regards
Revalution A/c | |||||
Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) |
Stock | 1,000 | ||||
Machinery | 7,000 | ||||
Capital A/c (8,000 in 5:3) | |||||
X | 5,000 | ||||
Y | 3,000 | ||||
8,000 | 8,000 |
Partner's Capital A/c | |||||
Particulars | X's Capital A/c | Y's Capital A/c | Particulars | X's Capital A/c | Y's Capital A/c |
X's Capital A/c | 3,000 | Balance b/d | 52,000 | 54,000 | |
Goodwill | 5,000 | 3,000 | Y's Capital A/c | 3,000 | |
Advertisement Suspense | 500 | 300 | Revaluation | 5,000 | 3,000 |
Workmen Compensation Fund | 2,500 | 1,500 | |||
General Reserve | 3,000 | 1,800 | |||
Bal C/d | 60,000 | 54,000 | |||
65,500 | 60,300 | 65,500 | 60,300 |
Calculation of Sacrificing and Gaining Partners | ||
X | Y | |
Old Ratio | 5/8 | 3/8 |
Less : New Ratio | 3/8 | 5/8 |
1/4 | - 1/4 | |
Sacrificing | Gaining |
Calculation of Goodwill | ||
Average profits of last 3 years | (7,500 + 4,000 + 6,500)/3 | 6,000 |
Goodwill at two years purchase | (6,000 x 2) | 12,000 |
Goodwill Adjustment | ||
Sacrificing Ratio | Only X is sacrificing | |
Share of Goodwill of X | (12,000 x 1/4) | 3,000 |
Distribution in Sacrificing Ratio | ||
Y's Capital A/c | 3,000 |
For finding capital we have followed the following procedures :
Firstly we had found the revaluation profits by making necessary adjustments given in the question , Then after finfing Revaluation profits we transfered them to X and Y's capital accounts ,
So our job for revaluation was completed . Now we had done the goodwill adjustment in sacrificing and gaining ratio between X and Y and passed the necessary journal entries as shown above .
After this we had transferred all the accumulated profits and losses of the old balancesheet in the Capital account of partners in Old ratio .
The resultant balance is the closing balance of Partners .
Hope this helps
Keep posting
Regards