Double Entry Book Keeping Ts Grewal (2017) Solutions for Class 12 Commerce Accountancy Chapter 4 Retirement And Death Of A Partner are provided here with simple step-by-step explanations. These solutions for Retirement And Death Of A Partner are extremely popular among class 12 Commerce students for Accountancy Retirement And Death Of A Partner Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal (2017) Book of class 12 Commerce Accountancy Chapter 4 are provided here for you for free. You will also love the ad-free experience on Meritnationâ€™s Double Entry Book Keeping Ts Grewal (2017) Solutions. All Double Entry Book Keeping Ts Grewal (2017) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.

#### Answer:

Note: Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio.

#### Answer:

Old Ratio (Ram, Mohan and Sohan) = or 3 : 5 : 7

Sohan’s Profit Share =

Ram and Mohan decided to take his share in the ratio of 3 : 2

New Profit Share = Old Profit Share  +  Share taken from Sohan

∴ New Profit Ratio (Ram and Mohan) = 36 : 39 or 12 : 13

#### Answer:

Old Ratio (Kangli, Mangli and Sanvali) = 4 : 3 : 2

New Ratio (Mangli and Sanvali) = 5 : 3

Gaining RatioNew Ratio − Old Ratio

∴Gaining Ratio = 21 : 11

#### Answer:

 Journal Particulars L.F. Debit Amount Rs Credit Amount Rs Naresh’s Capital A/c Dr. 15,000 Yogesh’s Capital A/c Dr. 15,000 To Mukesh’s Capital A/c 30,000 (Adjustment Mukesh’s share of goodwill made)

Working Notes:

WN 1 Calculation of Gaining Ratio

Old Ratio = 2 : 2 : 1 : 1

Mukesh retires from the firm.

New Ratio = 1 : 1 : 1

Gaining RatioNew Ratio − Old Ratio

∴Gaining Ratio (Naresh and Yogesh) = 1 : 1

WN 2 Adjustment of Goodwill

Goodwill of the firm = Rs 90,000

Mukesh’s share of goodwill

This share of goodwill is to be debited to remaining Partners’ Capital Accounts in their gaining ratio (i.e. 1 : 1).

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) X’s Capital A/c Dr. 9,600 Y’s Capital A/c Dr. 7,200 Z’s Capital A/c Dr. 4,800 To Goodwill A/c 21,600 (Goodwill appearing in the books was written–off) X’s Capital A/c Dr. 3,900 Z’s Capital A/c 3,300 To Y’s Capital A/c 7,200 (Goodwill adjusted through Partners’ Capital Accounts)

Working Notes:

WN 1: Calculation of Gaining Ratio

WN 2: Calculation of Goodwill
Total amount of Goodwill

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) Y’s Capital A/c Dr. 15,000 To Z’s Capital A/c 7,500 To X’s Capital A/c 7,500 (Goodwill adjusted through Partners’ Capital Accounts)

Working Notes: Calculation of Gaining Ratio

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) Profit & Loss Appropriation A/c Dr. 64,000 To X’s Capital A/c 46,000 To Z’s Capital A/c 18,000 (Profit Shared among new partners) X’s Capital A/c Dr. 70,000 Z’s Capital A/c Dr. 50,000 To Y’s Capital A/c 1,20,000 (Goodwill adjusted through capital)

Working Notes:

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) X’s Capital A/c Dr. 5,000 Y’s Capital A/c 25,000 To Z’s Capital A/c 30,000 (Goodwill adjusted through Partners’ Capital Accounts)

Working Notes: Calculation of Gaining Ratio

#### Answer:

 Revaluation Account Dr. Cr. Particulars Amount Rs Particulars Amount Rs Plant and Machinery (40,000 × 10%) 4,000 Building (1,00,000 × 20%) 20,000 Provision for Doubtful Debts 1,000 Stock of Finished Goods 5,000 Stock of Raw Materials 2,000 Computer 2,000 Workmen’s Compensation Claim 5,000 Profit transferred to: A’s Capital A/c 6,000 B’s Capital A/c 6,000 C’s Capital A/c 3,000 15,000 27,000 27,000

 Journal Particulars L.F. Debit Amount Rs Credit Amount Rs Building A/c Dr. 20,000 Stock of Finished Good A/c Dr. 5,000 Computer A/c Dr. 2,000 To Revaluation A/c 27,000 (Increase in value Assets transferred to Revaluation Account) Revaluation A/c Dr. 12,000 To Plant and Machinery A/c 4,000 To Provision for Doubtful Debts A/c 1,000 To Stock of Raw Material A/c 2,000 To Workmen’s Compensation Claim A/c 5,000 ( Decrease in value of Assets and increase in Liabilities transferred to Revaluation Account) Revaluation A/c Dr. 15,000 To A’s Capital A/c 6,000 To B’s Capital A/c 6,000 To C’s Capital A/c 3,000 (Revalution Profit transferred to Partners’ Capital accounts)

#### Answer:

 Revaluation Account Particulars Amount (Rs) Particulars Amount (Rs) Plant & Machinery A/c 3,500 Stock A/c 5,000 Motor Van A/c 1,200 Building A/c 4,500 Outstanding bill for Repairs 2,500 Prepaid fire insurance 2,500 Provision for Doubtful Debts A/c 1,950 Profit transferred to: A’s Capital A/c 1,425 B’s Capital A/c 950 C’s Capital A/c 475 2,850 9,500 9,500

 B’s Capital Account Particulars Amount (Rs) Amount (Rs) B’s Loan A/c (Balancing figure) 40,950 Balance b/d 30,000 General Reserve A/c 4,000 A’s Capital A/c 4,500 C’s Capital A/c 1,500 Revaluation A/c 950 40,950 40,950

Working Notes: Calculation of B’s Share of Goodwill

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) X’s Capital A/c Dr 3,000 Z’s Capital A/c Dr. 7,000 To Y’s Capital A/c 10,000 (Revaluation adjusted through capital)

Working Notes:

WN1: Calculation of Gaining Ratio

WN2: Adjustment for Y's share

WN 3: Adjustment for Revaluation of Assets & Liabilities

 Particulars Amount Rs Land and Building 50,000 Trade Creditors 5,000 Less: Plant and Machinery 10,000 Outstanding Expenses 15,000 Profit 30,000

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) General Reserve A/c Dr. 60,000 To X’s Capital A/c 30,000 To Y’s Capital A/c 20,000 To Z’s Capital A/c 10,000 (General reserve distributed among the partners in old ratio) X’s Capital A/c Dr. 15,000 Y’s Capital A/c Dr. 10,000 Z’s Capital A/c Dr. 5,000 To Profit & Loss A/c 30,000 (Debit balance of Profit & Loss distributed among the partners in old ratio) Workmen Compensation Reserve A/c Dr. 24,000 To X’s Capital A/c 12,000 To Y’s Capital A/c 8,000 To Z’s Capital A/c 4,000 (Workmen compensation reserve distributed among the partners in old ratio)

Note: Employees provident fund is a statutory liability of the firm, thus, it will not be distributed among the partners.

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) P’s Capital A/c Dr 3,000 R’s Capital A/c Dr. 7,000 To Q’s Capital A/c 10,000 (Reserves adjusted through capital)

Working Notes:

WN1: Calculation of Gaining Ratio

WN2: Calculation of Amount to be Adjusted

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) X’s Capital A/c Dr 20,000 Z’s Capital A/c Dr. 10,000 To Y’s Capital A/c 30,000 (Reserves adjusted through capital)

Working Notes:

WN1: Calculation of Gaining Ratio

WN 2: Amount to be adjusted

 Particulars (Rs) General Reserve 50,000 + Contingency Reserve 5,000 + Profit and Loss Account 30,000 + Investment Fluctuation Reserve 5,000 + Workmen Compensation Reserve 10,000 $-$Advertisement Suspense 10,000 Total 90,000

#### Answer:

 Revaluation Account Particulars Amount (Rs) Particulars Amount (Rs) Plant & Machinery A/c 2,000 Stock A/c 6,000 Furniture A/c 1,000 Building A/c 6,000 Provision for Doubtful Debts A/c 500 Profit transferred to: X’s Capital A/c 3,400 Y’s Capital A/c 3,400 Z’s Capital A/c 1,700 8,500 12,000 12,000

 Partners’ Capital Accounts Dr. Cr. Particulars X Y Z Particulars X Y Z Y’s Capital A/c 5,333 2,667 Balance b/d 40,000 40,000 30,000 Y’s Loan A/c 57,400 X’s Capital A/c 5,333 Balance c/d 44,067 32,033 Z’s Capital A/c 2,667 Reserve A/c 6,000 6,000 3,000 Revaluation A/c 3,400 3,400 1,700 49,400 57,400 34,700 49,400 57,400 34,700

 Balance Sheet as on March 31, 2017 Liabilities Amount (Rs) Assets Amount (Rs) Capital A/cs: Cash 3,000 X 44,067 Sundry Debtors 20,000 Z 32,033 76,100 Less: Provision for Doubtful Debts 1,500 18,500 Creditors 25,000 Furniture 10,000 Bills Payable 12,000 Less: Depreciation 1,000 9,000 Y’s Loan 57,400 Plant & Machinery 40,000 Less: Depreciation 2,000 38,000 Stock 30,000 Add: Appreciation 6,000 36,000 Land & Building 60,000 Add: Appreciation 6,000 66,000 1,70,500 1,70,500

Working Notes: Calculation of Y’s Share of Goodwill

#### Answer:

 Journal Particulars L.F. Debit Amount Rs Credit Amount Rs Revaluation A/c Dr. 400 To Provision for Doubtful Debts A/c 400 (Provision for Doubtful Debts created) Building A/c Dr. 7,000 To Revaluation A/c 7,000 (Increase in value of Building transferred to Revaluation Account) Revaluation A/c Dr. 6,600 To A’s Capital A/c 3,300 To B’s Capital A/c 2,200 To C’s Capital A/c 1,100 (Revaluation profit distributed among partners in their old ratio) A’s Capital A/c Dr. 2,250 C’s Capital A/c Dr. 750 To B’s Capital A/c 3000 (Share of B’s goodwill adjusted in gaining ratio of A and C) B’s Capital A/c Dr. 15,200 To B’s Loan A/c 10,200 To Cash A/c 5,000 (Rs 5,000 paid to B and balance transferred to his Loan Account)

 Balance Sheet as on March 31, 2017 (after B’s Retirement) Liabilities Amount Rs Assets Amount Rs Sundry Creators 13,590 Cash (5,900 – 5,000) 900 Debtors 8,000 B’s Loan A/c 10,200 Less: Provision for Doubtful Debts 400 7,600 Capital A/cs: Stock 11,690 A 16,050 C 10,350 26,400 Building (23,000 + 7,000) 30,000 50,190 50,190

Working Notes:

WN 1 Adjustment of Goodwill

Old Ratio (A, B and C) = 3 : 2 : 1

B retires from the firm.

∴ Gaining Ratio = 3 : 1

Goodwill of the firm = Rs 9,000

B’s Share of Goodwill =

This share of goodwill is to be distributed between A and C in their gaining ratio (i.e. 3 : 1).

WN 2
 Revaluation Account Dr. Cr. Particulars Amount Rs Particulars Amount Rs Provision for Doubtful Debts (8,000 × 5%) 400 Building 7,000 Profit transferred to: A’s Capital A/c 3,300 B’s Capital A/c 2,200 C’s Capital A/c 1,100 6,600 7,000 7,000

WN 3
 Partners’ Capital Accounts Dr. Cr. Particulars A B C Particulars A B C B’s Capital A/c  (Goodwill) 2,250 750 Balance b/d 15,000 10,000 10,000 Cash 5,000 Revaluation A/c (Profit) 3,300 2,200 1,100 B’s Loan A/c 10,200 A’s Capital A/c (Goodwill) 2,250 Balance c/d 16,050 10,350 B’s Capital A/c (Goodwill) 750 18,300 15,200 11,100 18,300 15,200 11,100

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 1. Revaluation A/c Dr. 1,17,000 To Debtors A/c 17,000 To Furniture A/c 40,000 To Land & Building A/c 60,000 (Transferred  decrease in the value of assets) 2. Stock  A/c Dr. 19,000 Plant & Machinery A/c 33,000 To Revaluation A/c 52,000 (Transferred  increase in the value of assets) 3. Ram’s Capital A/c Dr. 32,500 Shyam’s Capital A/c Dr. 19,500 Mohan’s Capital A/c Dr. 13,000 To Revaluation A/c 65,000 (Transferred loss on revaluation) 4. General Reserve A/c Dr. 1,00,000 Workmen Compensation Reserve A/c Dr. 67,500 To Ram’s Capital A/c 83,750 To Shyam’s Capital A/c 50,520 To Mohan’s Capital A/c 33,500 (Reserve distributed) 5. Ram’s Capital A/c Dr. 9,000 Shyam’s Capital A/c 9,000 To Mohan’s Capital A/c 18,000 (Goodwill adjusted through capital) 6. Mohan’s Capital A/c Dr. 1,65,000 To Bank A/c 1,65,000 (Cash paid to Mohan) 7. Bank A/c Dr. 1,65,000 To Ram’s Capital A/c 99,000 To Shyam’s Capital A/c 66,000 (Cash brought in by Ram and Shyam) 8. Mohan’s Capital A/c Dr. 73,500 To Mohan’s Loan A/c 73,500 (Balance of capital transferred to loan account)

 Revaluation Account Particulars Amount (Rs) Particulars Amount (Rs) Debtors A/c 17,000 Stock A/c 19,000 Furniture A/c 40,000 Plant & Machinery A/c 33,000 Land and Building A/c 60,000 Loss transferred to: Ram’s Capital A/c 32,500 Shyam’s Capital A/c 19,500 Mohan’s Capital A/c 13,000 65,000 1,17,000 1,17,000

 Partners’ Capital Accounts Dr. Cr. Particulars Ram Shyam Mohan Particulars Ram Shyam Mohan Revaluation A/c 32,500 19,500 13,000 Balance b/d 4,00,000 6,00,000 2,00,000 Mohan’s Capital A/c 9,000 9,000 General Reserve A/c 50,000 30,000 20,000 Bank A/c 1,65,000 Workmen Compensation Reserve A/c 33,750 20,250 13,500 Mohan’s Loan A/c 73,500 Ram’s Capital A/c 9,000 Balance c/d 5,41,250 6,87,750 Shyam’s Capital A/c 9,000 Bank A/c 99,000 66,000 5,82,750 1,16,250 2,51,500 5,82,750 1,16,250 2,51,500

 Balance Sheet as on March 31, 2017 Liabilities Amount (Rs) Assets Amount (Rs) Capital A/cs: Cash 55,000 Ram 5,41,250 Debtors 3,40,000 Shyam 6,87,750 12,29,000 Less:  Debtors written-off 17,000 3,23,000 Creditors 1,98,000 Furniture 1,42,500 Bills Payable 92,500 Plant & Machinery 2,35,300 Mohan’s Loan 73,500 Stock 2,00,000 Land & Building 2,00,000 Bank 1,61,500 Computer 1,32,000 Investments 1,43,700 15,93,000 15,93,000

Working Notes: Calculation of Gaining Ratio

#### Answer:

 Revaluation Account Particulars Amount (Rs) Particulars Amount (Rs) Plant A/c 15,000 Freehold Property A/c 10,000 Stock A/c 5,500 Loss transferred to: Provision for Doubtful Debts A/c 1,500 A’s Capital A/c 4,800 B’s Capital A/c 4,800 C’s Capital A/c 2,400 12,000 22,000 22,000

 Partners’ Capital Accounts Dr. Cr. Particulars A B C Particulars A B C Revaluation A/c 4,800 4,800 2,400 Balance b/d 1,25,750 1,00,000 85,000 A’s Capital A/c − 30,000 − B’s Capital A/c 30,000 − 15,000 C’s Capital A/c 15,000 − Bank A/c − 2,24,300 − Bank A/c 1,50,950 − 97,600 Balance c/d − 2,74,500 − 1,55,750 3,24,300 1,00,000 1,55,750 3,24,300 1,00,000

 Bank Account Particulars Amount (Rs) Amount (Rs) Balance b/d 24,250 A’s Capital A/c 1,50,950 B’s Capital A/c (Balancing Figure) 2,24,300 C’s Capital A/c 97,600 2,48,550 2,48,550

 Balance Sheet as at…. Liabilities Amount (Rs) Assets Amount (Rs) B’s Capital A/c: 2,74,500 Freehold Property 90,000 Trade Creditors 70,000 Add: Appreciation 10,000 1,00,000 Plant 1,50,000 Less: Depreciation 15,000 1,35,000 Debtors 62,500 Less: Provision for Doubtful Debts 2,500 60,000 Stock 55,000 Less: Depreciation 5,500 49,500 3,44,500 3,44,500

#### Answer:

 M’s Capital Account Particulars Amount (Rs) Amount (Rs) Drawings A/c 30,000 Balance b/d 1,12,500 Interest on Drawings A/c 3,000 Interest on Capital A/c 750 M’s Loan A/c (Balancing Figure) 1,50,000 Salary A/c 2,250 Profit & Loss A/c 37,500 Goodwill A/c 30,000 1,83,000 1,83,000

 M’s Loan Account Dr. Cr. Date Particulars Amount (Rs) Date Particulars Amount (Rs) 2015 2015 March 31 Balance c/d 1,50,000 March 31 M’s Capital A/c 1,50,000 1,50,000 1,50,000 2016 2015 March 31 Bank A/c (75,000 + 15,000) 90,000 April 01 M’s Capital A/c 1,50,000 March 31 Balance c/d 75,000 2016 March 31 Interest A/c @ 10% 15,000 1,65,000 1,65,000 2017 2016 March 31 Bank A/c (75,000 + 7,500) 82,500 April 01 Balance b/d 75,000 2017 March 31 Interest A/c @ 10% 7,500 82,500 82,500

#### Answer:

 P’s Capital Account Particulars Amount (Rs) Amount (Rs) P’s Loan A/c 46,700 Balance b/d 45,000 P’s Current A/c 1,700 46,700 46,700

 P’s Current Account Particulars Amount (Rs) Amount (Rs) Balance b/d 2,300 Goodwill 4,000 P’s Capital A/c 1,700 4,000 4,000

 P’s Loan Account Dr. Cr. Date Particulars Amount (Rs) Date Particulars Amount (Rs) 2010 2010 Dec. 31 Bank A/c 10,000 Dec. 31 P’s Capital A/c 46,700 Balance c/d 36,700 46,700 46,700 2011 2011 Dec. 31 Bank A/c 10,000 Jan. 01 Balance b/d 36,700 Balance c/d 28,902 Dec. 31 Interest A/c 2,202 39,902 38,902 2012 2012 Dec. 31 Bank A/c 10,000 Jan. 01 Balance b/d 28,902 Balance c/d 20,636 Dec. 31 Interest A/c 1,734 30,636 30,636 2013 2013 Dec. 31 Bank A/c 10,000 Jan. 01 Balance b/d 20,636 Balance c/d 11,874 Dec. 31 Interest A/c 1,238 21,874 21,874 2014 2014 Dec. 31 Bank A/c 10,000 Jan. 01 Balance b/d 11,874 Balance c/d 2,586 Dec. 31 Interest A/c 712 12,586 12,586 2015 2015 Dec. 31 Bank A/c 2,741 Jan. 01 Balance b/d 2,586 Dec. 31 Interest A/c 155 2,741 2,741

#### Answer:

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) 2016 April 01 X’s Capital A/c Dr. 4,000 Y’s Capital A/c Dr. 6,000 Z’s Capital A/c Dr. 2,000 To Goodwill A/c 12,000 (Existing goodwill written-off) X’s Capital A/c Dr. 49,600 To Y’s Capital A/c 18,600 To Z’s Capital A/c 31,000 (Goodwill adjusted by debiting gaining partner and crediting sacrificing partner) Land and Building A/c Dr. 20,000 Sundry Creditors A/c Dr. 30,000 To Revaluation A/c 50,000 (Increase in value of land & building and decrease in value of creditors recorded in Revaluation Account) Revaluation A/c Dr. 43,000 To Stock A/c 38,000 To Provision for Doubtful Debts A/c 5,000 (Decrease in value of stock and increase in provision for doubtful debts, recorded in revaluation) Prepaid Insurance A/c Dr. 5,000 To Revaluation A/c 5,000 (Amount paid for insurance carried forward as unexpired insurance) Revaluation A/c Dr. 12,000 To X’s Capital A/c 4,000 To Y’s Capital A/c 6,000 To Z’s Capital A/c 2,000 (Profit on revaluation transferred to Partners’ Capital Accounts in old profit sharing ratio of 2 : 3 : 1) Workmen Compensation Reserve A/c Dr. 20,000 To Workmen Compensation Claim A/c 8,000 To X’s Capital A/c 4,000 To Y’s Capital A/c 6,000 To Z’s Capital A/c 2,000 (Excess balance of WCR transferred to partners’ capital account) Investments Fluctuation Reserve A/c Dr. 10,000 To Investments A/c 4,000 To X’s Capital A/c 2,000 To Y’s Capital A/c 3,000 To Z’s Capital A/c 1,000 (Decrease in market value of investments settled through IFF and excess balance is transferred to partners’ capital accounts) X’s Capital A/c Dr. 4,000 Y’s Capital A/c Dr. 6,000 Z’s Capital A/c Dr. 2,000 To Advertisement A/c 12,000 (Balance of Advertisement Suspense Account is debited to Partners’ Capital Account) Z’s Capital A/c Dr. 3,32,000 To Bank A/c 1,66,000 To Z’s Loan A/c 1,66,000 (Half of the amount is immediately paid to Z and remaining half is transferred to his Loan Account)

 Revaluation Account Dr. Cr. Particulars Amount Rs Particulars Amount Rs Stock 38,000 Land and Building 20,000 Provision for Doubtful Debts 5,000 Sundry Creditors 30,000 Profit transferred to: Prepaid Insurance 5,000 X’s Capital A/c 4,000 Y’s Capital A/c 6,000 Z’s Capital A/c 2,000 12,000 55,000 55,000

 Partners’ Capital Accounts Dr. Cr. Particulars X Y Z Particulars X Y Z Y’s Capital A/c 18,600 Balance b/d 1,00,000 2,00,000 3,00,000 Z’s Capital A/c 31,000 Advertisement Suspense A/c 4,000 6,000 2,000 Revaluation A/c 4,000 6,000 2,000 Goodwill A/c 4,000 6,000 2,000 Workmen Compensation Reserve 4,000 6,000 2,000 Bank A/c 1,66,000 Investment Fluctuation Reserve 2,000 3,000 1,000 Z’s Loan A/c 1,66,000 X’s Capital A/c 18,600 31,000 Balance c/d 52,400 2,21,600 1,10,000 2,33,600 3,36,000 1,10,000 2,33,600 3,36,000

 Balance Sheet as at April 01, 2016 Liabilities Amount Rs Assets Amount Rs Capital A/cs: Investments 46,000 X 52,400 Land and Building 2,50,000 Y 2,21,600 2,74,000 Add: Undervaluation 20,000 2,70,000 Z’s Loan 1,66,000 Stock 80,000 Workmen Compensation Claim 8,000 Less: Overvaluation 38,000 42,000 Employees Provident Fund 60,000 Debtors 3,00,000 Sundry Creditors 3,00,000 Less: Prov. For D/D 15,000 2,85,000 Less: Written-off 30,000 2,70,000 Bank (2,96,000 – 1,66,000) 1,30,000 Prepaid Insurance 5,000 7,78,000 7,78,000

 Z’s Loan Account Dr. Cr. Date Particulars Amount Rs Date Particulars Amount Rs 2016 2015 March 31 Bank A/c (83,000 + 16,600) 99,600 April 01 Z’s Capital A/c 1,66,000 March 31 Balance c/d 83,000 2016 March 31 Interest A/c (1,66,000 @ 10%) 16,600 1,82,600 1,82,600 2017 2016 March 31 Bank A/c (83,000 + 8,300) 91,300 April 01 Balance b/d 83,000 2016 March 31 Interest A/c (83,000 @ 10%) 8,300 91,300 91,300

Working Notes:

WN 1: Calculation of sacrificing/gaining ratio

WN 2: Calculation of goodwill

#### Answer:

 Partners’ Capital Accounts Dr. Cr.