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
 
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
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