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 Meritnation’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.
Page No 4.110:
Question 1:
Answer:
Note: Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio.
Page No 4.110:
Question 2:
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
Page No 4.110:
Question 3:
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:
Page No 4.110:
Question 4:
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
Page No 4.110:
Question 5:
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:
Page No 4.110:
Question 6:
Answer:
Page No 4.110:
Question 7:
Answer:
Page No 4.110:
Question 8:
Answer:
Page No 4.111:
Question 9:
Answer:
Page No 4.111:
Question 10:
Answer:
Page No 4.111:
Question 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).
Page No 4.111:
Question 12:
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
Page No 4.111:
Question 13:
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
Page No 4.111:
Question 14:
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:
Page No 4.111:
Question 15:
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
Page No 4.111:
Question 16:
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) |
|
|
|
|
|
|
|
|
Page No 4.112:
Question 17:
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
Page No 4.112:
Question 18:
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 |
Page No 4.112:
Question 19:
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.
Page No 4.112:
Question 20:
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
Page No 4.113:
Question 21:
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 |
|
|
Page No 4.113:
Question 22:
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
Page No 4.113:
Question 23:
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 |
|
|
|
|
|
|
|
|
Page No 4.114:
Question 24:
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
Page No 4.114:
Question 25:
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 | ||||
Page No 4.115:
Question 26:
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 | |||||
Page No 4.115:
Question 27:
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 | |||||
Page No 4.115:
Question 28:
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
Page No 4.116:
Question 29:
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. |
|||||||||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
||||||||
Y’s Capital A/c |
7,500 |
|
2,500 |
Balance b/d |
4,50,000 |
3,00,000 |
1,50,000 |
||||||||
Y’s Capital A/c |
45,000 |
|
15,000 |
X’s Capital A/c |
|
45,000 |
|
||||||||
Bank |
|
50,000 |
|
Z’s Capital A/c |
|
15,000 |
|
||||||||
Y’s Loan |
|
3,20,000 |
|
X’s Capital A/c |
|
7,500 |
|
||||||||
Balance c/d |
3,97,500 |
|
1,32,500 |
Z’s Capital A/c |
|
2,500 |
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
4,50,000 |
3,70,000 |
1,50,000 |
|
4,50,000 |
3,70,000 |
1,50,000 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance Sheet as on April 01, 2017 |
|
||||||||||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|||||||||||
Creditors |
2,00,000 |
Building |
5,00,000 |
|
|||||||||||
Y’s Loan |
3,20,000 |
Machinery |
2,40,000 |
|
|||||||||||
Capital |
|
Stock |
1,32,000 |
|
|||||||||||
X |
3,97,500 |
|
Bank (1,30,00050,000) |
80,000 |
|
||||||||||
Z |
1,32,500 |
5,30,000 |
Debtors |
1,00,000 |
|
|
|||||||||
|
|
Less: Prov. for DD |
2,000 |
98,000 |
|
||||||||||
|
10,50,000 |
|
10,50,000 |
|
|||||||||||
|
|
|
|
|
|||||||||||
Working Notes:
WN1: Calculation of Gaining Ratio
WN 2: Adjustment for Revaluation of Assets & Liabilities
|
WN3: Calculation of Retiring Partner’s Share of Goodwill:
Page No 4.116:
Question 30:
Partners’ Capital Accounts |
|||||||||||||||
Dr. |
|
Cr. |
|||||||||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
||||||||
Y’s Capital A/c |
7,500 |
|
2,500 |
Balance b/d |
4,50,000 |
3,00,000 |
1,50,000 |
||||||||
Y’s Capital A/c |
45,000 |
|
15,000 |
X’s Capital A/c |
|
45,000 |
|
||||||||
Bank |
|
50,000 |
|
Z’s Capital A/c |
|
15,000 |
|
||||||||
Y’s Loan |
|
3,20,000 |
|
X’s Capital A/c |
|
7,500 |
|
||||||||
Balance c/d |
3,97,500 |
|
1,32,500 |
Z’s Capital A/c |
|
2,500 |
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
4,50,000 |
3,70,000 |
1,50,000 |
|
4,50,000 |
3,70,000 |
1,50,000 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance Sheet as on April 01, 2017 |
|
||||||||||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|||||||||||
Creditors |
2,00,000 |
Building |
5,00,000 |
|
|||||||||||
Y’s Loan |
3,20,000 |
Machinery |
2,40,000 |
|
|||||||||||
Capital |
|
Stock |
1,32,000 |
|
|||||||||||
X |
3,97,500 |
|
Bank (1,30,00050,000) |
80,000 |
|
||||||||||
Z |
1,32,500 |
5,30,000 |
Debtors |
1,00,000 |
|
|
|||||||||
|
|
Less: Prov. for DD |
2,000 |
98,000 |
|
||||||||||
|
10,50,000 |
|
10,50,000 |
|
|||||||||||
|
|
|
|
|
|||||||||||
Working Notes:
WN1: Calculation of Gaining Ratio
WN 2: Adjustment for Revaluation of Assets & Liabilities
|
WN3: Calculation of Retiring Partner’s Share of Goodwill:
Answer:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Investment A/c (WN1) | 1,000 | Building A/c | 10,000 | |
Stock A/c | 280 | Provision for Doubtful Debts A/c | 1,600 | |
Profit transferred to: | ||||
P’s Capital A/c
|
3,440 | |||
Q’s Capital A/c
|
3,440 | |||
R’s Capital A/c
|
3,440 | 10,320 | ||
11,600 | 11,600 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
R’s Capital A/c | 2,000 | − | − | Balance b/d | 51,000 | 40,000 | 40,000 | ||
Goodwill A/c | 1,000 | 1,000 | 1,000 | P’s Capital A/c | − | − | 2,000 | ||
Bank A/c | − | − | 23,440 | Revaluation A/c | 3,440 | 3,440 | 3,440 | ||
R’s Loan A/c | − | − | 28,000 | Profit & Loss A/c | 1,000 | 1,000 | 1,000 | ||
Balance c/d | 58,440 | 49,440 | − | Workmen Compensation Reserve A/c | 6,000 | 6,000 | 6,000 | ||
61,440 | 50,440 | 52,440 | 61,440 | 50,440 | 52,440 | ||||
Bank Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Balance b/d | 1,60,000 | R’s Capital A/c | 23,440 |
Balance c/d | 1,36,560 | ||
1,60,000 | 1,60,000 | ||
Balance Sheet
as on 31st March, 2016
|
||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
Capital A/cs: | Building (1,00,000 + 10,000) | 1,10,000 | ||
P
|
58,440 | Debtors | 30,000 | |
Q
|
49,440 | 1,07,880 | Investments (30,000 – 3,000) | 27,000 |
R’s Loan A/c | 28,000 | Stock (4,000 – 280) | 3,720 | |
Creditors | 2,00,400 | Bank | 1,36,560 | |
Machinery | 29,000 | |||
3,36,280 | 3,36,280 | |||
R’s Loan Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Bank A/c (14,000+ 2,240) | 16,240 | R’s Capital A/c | 28,000 |
Balance c/d | 14,000 | Interest A/c (28,000 × 8%) | 2,240 |
30,240 | 30,240 | ||
Bank A/c (14,000+ 1,120) | 15,120 | Balance b/d | 14,000 |
Interest A/c (14,000 × 8%) | 1,120 | ||
15,120 | 15,120 | ||
Working Notes:
WN 1: Calculation of Value of Investments
WN 2: Calculation of Valuation of Goodwill
WN 3: Calculation of Gaining Ratio
Page No 4.117:
Question 31:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Investment A/c (WN1) | 1,000 | Building A/c | 10,000 | |
Stock A/c | 280 | Provision for Doubtful Debts A/c | 1,600 | |
Profit transferred to: | ||||
P’s Capital A/c
|
3,440 | |||
Q’s Capital A/c
|
3,440 | |||
R’s Capital A/c
|
3,440 | 10,320 | ||
11,600 | 11,600 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
R’s Capital A/c | 2,000 | − | − | Balance b/d | 51,000 | 40,000 | 40,000 | ||
Goodwill A/c | 1,000 | 1,000 | 1,000 | P’s Capital A/c | − | − | 2,000 | ||
Bank A/c | − | − | 23,440 | Revaluation A/c | 3,440 | 3,440 | 3,440 | ||
R’s Loan A/c | − | − | 28,000 | Profit & Loss A/c | 1,000 | 1,000 | 1,000 | ||
Balance c/d | 58,440 | 49,440 | − | Workmen Compensation Reserve A/c | 6,000 | 6,000 | 6,000 | ||
61,440 | 50,440 | 52,440 | 61,440 | 50,440 | 52,440 | ||||
Bank Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Balance b/d | 1,60,000 | R’s Capital A/c | 23,440 |
Balance c/d | 1,36,560 | ||
1,60,000 | 1,60,000 | ||
Balance Sheet
as on 31st March, 2016
|
||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
Capital A/cs: | Building (1,00,000 + 10,000) | 1,10,000 | ||
P
|
58,440 | Debtors | 30,000 | |
Q
|
49,440 | 1,07,880 | Investments (30,000 – 3,000) | 27,000 |
R’s Loan A/c | 28,000 | Stock (4,000 – 280) | 3,720 | |
Creditors | 2,00,400 | Bank | 1,36,560 | |
Machinery | 29,000 | |||
3,36,280 | 3,36,280 | |||
R’s Loan Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Bank A/c (14,000+ 2,240) | 16,240 | R’s Capital A/c | 28,000 |
Balance c/d | 14,000 | Interest A/c (28,000 × 8%) | 2,240 |
30,240 | 30,240 | ||
Bank A/c (14,000+ 1,120) | 15,120 | Balance b/d | 14,000 |
Interest A/c (14,000 × 8%) | 1,120 | ||
15,120 | 15,120 | ||
Working Notes:
WN 1: Calculation of Value of Investments
WN 2: Calculation of Valuation of Goodwill
WN 3: Calculation of Gaining Ratio
Answer:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Plant & Machinery A/c | 5,000 | Creditors A/c | 3,600 | |
Provision for Doubtful Debts A/c | 400 | Investments A/c (17,600 – 15,000) | 2,600 | |
Patents A/c | 2,000 | Loss transferred to: | ||
X’s Capital A/c
|
600 | |||
Y’s Capital A/c
|
400 | |||
Z’s Capital A/c
|
200 | 1,200 | ||
7,400 | 7,400 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Advertisement Expenditure A/c | 2,625 | 1,750 | 875 | Balance b/d | 68,000 | 32,000 | 21,000 | ||
Goodwill A/c | 3,000 | 2,000 | 1,000 | X’s Capital A/c | 3,000 | ||||
Z’s Capital A/c | 3,000 | 2,000 | Y’s Capital A/c | 2,000 | |||||
Revaluation A/c | 600 | 400 | 200 | Workmen Compensation Reserve A/c | 4,500 | 3,000 | 1,500 | ||
Investments A/c | 17,600 | Investments Fluctuation Reserve | 3,000 | 2,000 | 1,000 | ||||
Bank A/c | 4,413 | ||||||||
Bills Payable A/c | 2,206 | ||||||||
Z’s Loan A/c | 2,206 | ||||||||
Balance c/d | 66,275 | 30,850 | |||||||
75,500 | 37,000 | 28,500 | 75,500 | 37,000 | 28,500 | ||||
Balance Sheet
as on April 01, 2014
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Cash at Bank (5,750 – 4,413) | 1,337 | |||
X
|
66,275 | Debtors | 40,000 | ||
Y
|
30,850 | 97,125 | Less: Provision for Doubtful Debts | 2,400 | 37,600 |
Creditors | 11,400 | Plant & Machinery (50,000 – 5,000) | 45,000 | ||
Bills Payable (Z) | 2,206 | Patents (10,000 – 2,000) | 8,000 | ||
Z’s Loan | 2,206 | Stock | 30,000 | ||
Liability for Workmen Compensation | 3,000 | ||||
Employees’ Provident Fund | 6,000 | ||||
1,21,937 | 1,21,937 | ||||
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) |
|
X’s Capital A/c | Dr. | 3,000 | |||
Y’s Capital A/c | 2,000 | ||||
To Z’s Capital A/c
|
5,000 | ||||
(Goodwill adjusted through capitals) | |||||
X’s Capital A/c | Dr. | 3,000 | |||
Y’s Capital A/c | Dr. | 2,000 | |||
Z’s Capital A/c | Dr. | 1,000 | |||
To Goodwill A/c
|
6,000 | ||||
(Old goodwill written-off) |
Working Notes:
Page No 4.117:
Question 32:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Plant & Machinery A/c | 5,000 | Creditors A/c | 3,600 | |
Provision for Doubtful Debts A/c | 400 | Investments A/c (17,600 – 15,000) | 2,600 | |
Patents A/c | 2,000 | Loss transferred to: | ||
X’s Capital A/c
|
600 | |||
Y’s Capital A/c
|
400 | |||
Z’s Capital A/c
|
200 | 1,200 | ||
7,400 | 7,400 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Advertisement Expenditure A/c | 2,625 | 1,750 | 875 | Balance b/d | 68,000 | 32,000 | 21,000 | ||
Goodwill A/c | 3,000 | 2,000 | 1,000 | X’s Capital A/c | 3,000 | ||||
Z’s Capital A/c | 3,000 | 2,000 | Y’s Capital A/c | 2,000 | |||||
Revaluation A/c | 600 | 400 | 200 | Workmen Compensation Reserve A/c | 4,500 | 3,000 | 1,500 | ||
Investments A/c | 17,600 | Investments Fluctuation Reserve | 3,000 | 2,000 | 1,000 | ||||
Bank A/c | 4,413 | ||||||||
Bills Payable A/c | 2,206 | ||||||||
Z’s Loan A/c | 2,206 | ||||||||
Balance c/d | 66,275 | 30,850 | |||||||
75,500 | 37,000 | 28,500 | 75,500 | 37,000 | 28,500 | ||||
Balance Sheet
as on April 01, 2014
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Cash at Bank (5,750 – 4,413) | 1,337 | |||
X
|
66,275 | Debtors | 40,000 | ||
Y
|
30,850 | 97,125 | Less: Provision for Doubtful Debts | 2,400 | 37,600 |
Creditors | 11,400 | Plant & Machinery (50,000 – 5,000) | 45,000 | ||
Bills Payable (Z) | 2,206 | Patents (10,000 – 2,000) | 8,000 | ||
Z’s Loan | 2,206 | Stock | 30,000 | ||
Liability for Workmen Compensation | 3,000 | ||||
Employees’ Provident Fund | 6,000 | ||||
1,21,937 | 1,21,937 | ||||
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) |
|
X’s Capital A/c | Dr. | 3,000 | |||
Y’s Capital A/c | 2,000 | ||||
To Z’s Capital A/c
|
5,000 | ||||
(Goodwill adjusted through capitals) | |||||
X’s Capital A/c | Dr. | 3,000 | |||
Y’s Capital A/c | Dr. | 2,000 | |||
Z’s Capital A/c | Dr. | 1,000 | |||
To Goodwill A/c
|
6,000 | ||||
(Old goodwill written-off) |
Working Notes:
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Revaluation A/c |
Dr. |
|
3,000 |
|
To Fixed Assets A/c |
|
|
2,000 |
|
To Provision for doubtful Debts A/c |
|
|
1,000 |
|
(Decrease in value of Fixed Assets and provision for doubtful debts transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
P’s Capital A/c |
Dr. |
|
1,200 |
|
Q’s Capital A/c |
Dr. |
|
900 |
|
R’s Capital A/c |
Dr. |
|
900 |
|
To Revaluation A/c |
|
|
3,000 |
|
(Revaluation loss distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
Workmen’s Compensation Reserve A/c |
Dr. |
|
10,000 |
|
To Outstanding Workmen’s Compensation A/c |
|
|
4,000 |
|
To P’s Capital A/c |
|
|
2,400 |
|
To Q’s Capital A/c |
|
|
1,800 |
|
To R’s Capital A/c |
|
|
1,800 |
|
(Workmen Compensation claim adjusted against Workmen’s Compensation Reserve and the balance amount is distributed among the partners) |
|
|
|
|
|
|
|
|
|
Reserves A/c |
Dr. |
|
10,000 |
|
To R’s Capital A/c |
|
|
4,000 |
|
To Q’s Capital A/c |
|
|
3,000 |
|
To R’s Capital A/c |
|
|
3,000 |
|
(Reserve distributed among all the partners in their old ratio) |
|
|
|
|
|
|
|
|
|
P’s Capital A/c |
Dr. |
|
13,333 |
|
Q’s Capital A/c |
Dr. |
|
1,667 |
|
To R’s Capital A/c |
|
|
15,000 |
|
(R’s share of goodwill adjusted) |
|
|
|
|
|
|
|
|
|
R’s Capital A/c |
Dr. |
|
27,900 |
|
To R’s Loan A/c |
|
|
27,900 |
|
(R’s capital balance transferred to his Loan Account) |
|
|
|
|
|
|
|
|
Balance Sheet |
|||||
as on March 31,2009 (after R’s Retirement) |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Creditors |
10,000 |
Cash at Bank |
20,000 |
||
Employees’ Provident Fund |
20,000 |
Debtors |
15,000 |
|
|
Outstanding Workmen’s Compensation Reserve |
4,000 |
Less: Provision for Doubtful Debts |
(1,000) |
14,000 |
|
R’s Loan |
27,900 |
Stock |
17,000 |
||
Capital A/cs: |
|
Fixed Assets (52,000 – 2,000) |
50,000 |
||
P |
21,867 |
|
|
|
|
Q |
17,233 |
39,100 |
|
|
|
|
|
1,01,000 |
|
1,01,000 |
|
|
|
|
|
R’s Loan Account |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
2010 |
|
|
2009 |
|
|
March 31 |
Bank (9,300 + 2,790) |
12,090 |
April 01 |
R’s Capital A/c |
27,900 |
2010 | |||||
March 31 |
Balance c/d |
18,600 |
March 31 |
Interest (27,900 × 10%) |
2,790 |
|
|
30,690 |
|
|
30,690 |
2011 |
|
|
2010 |
|
|
March 31 |
Bank (9,300 + 1,860) |
11,160 |
April 01 |
Balance b/d |
18,600 |
|
|
|
2011 |
|
|
March 31 |
Balance c/d |
9,300 |
March 31 |
Interest (18,600 × 10%) |
1,860 |
|
|
20,460 |
|
|
20,460 |
2012 |
|
|
2011 |
|
|
March 31 |
Bank (9,300 + 930) |
10,230 |
April 01 |
Balance b/d |
9,300 |
|
|
|
2012 |
|
|
|
|
|
March 31 |
Interest (9,300 × 10%) |
930 |
|
|
|
|
|
|
|
|
10,230 |
|
|
10,230 |
|
|
|
|
|
|
Working Notes:
WN 1
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Fixed Assets |
2,000 |
Loss transferred to: |
|
|
Provision for Doubtful Debts |
1,000 |
P’s Capital A/c |
1,200 |
|
|
|
Q’s Capital A/c |
900 |
|
|
|
R’s Capital A/c |
900 |
3,000 |
|
3,000 |
|
3,000 |
|
|
|
|
|
WN 2
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
Drawings A/c |
|
|
6,000 |
Balance b/d |
30,000 |
15,000 |
15,000 |
R’s Capital A/c (Goodwill) |
13,333 |
1,667 |
|
Workmen’s Compensation Reserve |
2,400 |
1,800 |
1,800 |
Revaluation A/c |
1,200 |
900 |
900 |
Reserves |
4,000 |
3,000 |
3,000 |
R’s Loan A/c |
|
|
27,900 |
P’s Capital A/c (Goodwill) |
|
|
13,333 |
Balance c/d |
21,867 |
17,233 |
|
Q’s Capital A/c (Goodwill) |
|
|
1,667 |
|
36,400 |
19,800 |
34,800 |
|
36,400 |
19,800 |
34,800 |
|
|
|
|
|
|
|
|
WN 3
Calculation of Gaining Ratio
Old Ratio (P, Q and R) = 4 : 3 : 3
New Ratio (P and Q) = 2 : 1
R retires from the firm.
Gaining Ratio = New Ratio − Old Ratio
∴ Gaining Ratio = 8 : 1
WN 4
Adjustment of Goodwill
Goodwill of the firm = Rs 50,000
R’s Share of Goodwill =
This share of goodwill is to be distributed between P and R in their gaining ratio (i.e. 8 : 1).
Page No 4.118:
Question 33:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Revaluation A/c |
Dr. |
|
3,000 |
|
To Fixed Assets A/c |
|
|
2,000 |
|
To Provision for doubtful Debts A/c |
|
|
1,000 |
|
(Decrease in value of Fixed Assets and provision for doubtful debts transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
P’s Capital A/c |
Dr. |
|
1,200 |
|
Q’s Capital A/c |
Dr. |
|
900 |
|
R’s Capital A/c |
Dr. |
|
900 |
|
To Revaluation A/c |
|
|
3,000 |
|
(Revaluation loss distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
Workmen’s Compensation Reserve A/c |
Dr. |
|
10,000 |
|
To Outstanding Workmen’s Compensation A/c |
|
|
4,000 |
|
To P’s Capital A/c |
|
|
2,400 |
|
To Q’s Capital A/c |
|
|
1,800 |
|
To R’s Capital A/c |
|
|
1,800 |
|
(Workmen Compensation claim adjusted against Workmen’s Compensation Reserve and the balance amount is distributed among the partners) |
|
|
|
|
|
|
|
|
|
Reserves A/c |
Dr. |
|
10,000 |
|
To R’s Capital A/c |
|
|
4,000 |
|
To Q’s Capital A/c |
|
|
3,000 |
|
To R’s Capital A/c |
|
|
3,000 |
|
(Reserve distributed among all the partners in their old ratio) |
|
|
|
|
|
|
|
|
|
P’s Capital A/c |
Dr. |
|
13,333 |
|
Q’s Capital A/c |
Dr. |
|
1,667 |
|
To R’s Capital A/c |
|
|
15,000 |
|
(R’s share of goodwill adjusted) |
|
|
|
|
|
|
|
|
|
R’s Capital A/c |
Dr. |
|
27,900 |
|
To R’s Loan A/c |
|
|
27,900 |
|
(R’s capital balance transferred to his Loan Account) |
|
|
|
|
|
|
|
|
Balance Sheet |
|||||
as on March 31,2009 (after R’s Retirement) |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Creditors |
10,000 |
Cash at Bank |
20,000 |
||
Employees’ Provident Fund |
20,000 |
Debtors |
15,000 |
|
|
Outstanding Workmen’s Compensation Reserve |
4,000 |
Less: Provision for Doubtful Debts |
(1,000) |
14,000 |
|
R’s Loan |
27,900 |
Stock |
17,000 |
||
Capital A/cs: |
|
Fixed Assets (52,000 – 2,000) |
50,000 |
||
P |
21,867 |
|
|
|
|
Q |
17,233 |
39,100 |
|
|
|
|
|
1,01,000 |
|
1,01,000 |
|
|
|
|
|
R’s Loan Account |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
2010 |
|
|
2009 |
|
|
March 31 |
Bank (9,300 + 2,790) |
12,090 |
April 01 |
R’s Capital A/c |
27,900 |
2010 | |||||
March 31 |
Balance c/d |
18,600 |
March 31 |
Interest (27,900 × 10%) |
2,790 |
|
|
30,690 |
|
|
30,690 |
2011 |
|
|
2010 |
|
|
March 31 |
Bank (9,300 + 1,860) |
11,160 |
April 01 |
Balance b/d |
18,600 |
|
|
|
2011 |
|
|
March 31 |
Balance c/d |
9,300 |
March 31 |
Interest (18,600 × 10%) |
1,860 |
|
|
20,460 |
|
|
20,460 |
2012 |
|
|
2011 |
|
|
March 31 |
Bank (9,300 + 930) |
10,230 |
April 01 |
Balance b/d |
9,300 |
|
|
|
2012 |
|
|
|
|
|
March 31 |
Interest (9,300 × 10%) |
930 |
|
|
|
|
|
|
|
|
10,230 |
|
|
10,230 |
|
|
|
|
|
|
Working Notes:
WN 1
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Fixed Assets |
2,000 |
Loss transferred to: |
|
|
Provision for Doubtful Debts |
1,000 |
P’s Capital A/c |
1,200 |
|
|
|
Q’s Capital A/c |
900 |
|
|
|
R’s Capital A/c |
900 |
3,000 |
|
3,000 |
|
3,000 |
|
|
|
|
|
WN 2
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
Drawings A/c |
|
|
6,000 |
Balance b/d |
30,000 |
15,000 |
15,000 |
R’s Capital A/c (Goodwill) |
13,333 |
1,667 |
|
Workmen’s Compensation Reserve |
2,400 |
1,800 |
1,800 |
Revaluation A/c |
1,200 |
900 |
900 |
Reserves |
4,000 |
3,000 |
3,000 |
R’s Loan A/c |
|
|
27,900 |
P’s Capital A/c (Goodwill) |
|
|
13,333 |
Balance c/d |
21,867 |
17,233 |
|
Q’s Capital A/c (Goodwill) |
|
|
1,667 |
|
36,400 |
19,800 |
34,800 |
|
36,400 |
19,800 |
34,800 |
|
|
|
|
|
|
|
|
WN 3
Calculation of Gaining Ratio
Old Ratio (P, Q and R) = 4 : 3 : 3
New Ratio (P and Q) = 2 : 1
R retires from the firm.
Gaining Ratio = New Ratio − Old Ratio
∴ Gaining Ratio = 8 : 1
WN 4
Adjustment of Goodwill
Goodwill of the firm = Rs 50,000
R’s Share of Goodwill =
This share of goodwill is to be distributed between P and R in their gaining ratio (i.e. 8 : 1).
Answer:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Plant & Equipment A/c | 6,000 | Building A/c | 24,000 | |
Provision for Doubtful Debts A/c | 800 | Creditors A/c | 1,000 | |
Stock A/c | 2,400 | |||
Outstanding Salary A/c | 5,000 | |||
Claim for Damages | 3,480 | |||
Profit transferred to: | ||||
P’s Capital A/c
|
3,660 | |||
Q’s Capital A/c
|
2,440 | |||
R’s Capital A/c
|
1,220 | 7,320 | ||
25,000 | 25,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
P’s Loan A/c | 48,000 | − | − | Balance b/d | 48,000 | 24,000 | 12,000 | ||
Balance c/d | − | 24,000 | 12,000 | ||||||
48,000 | 24,000 | 12,000 | 48,000 | 24,000 | 12,000 | ||||
Partners’ Current Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
P’s Current A/c | − | 9,600 | 4,800 | Balance b/d | 3,840 | 3,360 | 2,240 | ||
Bank A/c | 21,900 | − | − | Q’s Current A/c | 9,600 | − | − | ||
R’s Current A/c | 4,800 | − | − | ||||||
Revaluation A/c | 3,660 | 2,440 | 1,220 | ||||||
Balance c/d | − | 3,800 | 1,340 | ||||||
21,900 | 9,600 | 4,800 | 21,900 | 9,600 | 4,800 | ||||
Balance Sheet
as on March 31, 2016
|
|||||
Liabilities | Amount (Rs) |
Assets | Amount (Rs) | ||
Capital A/cs: | Building (24,000 + 24,000) | 48,000 | |||
Q
|
24,000 | Debtors | 24,800 | ||
R
|
12,000 | 36,000 |
Less: Provision for Doubtful Debts
|
3,200 | 21,600 |
Creditors (31,200 – 1,000) | 30,200 | Plant & Equipment | 31,600 | ||
Outstanding Salary | 5,000 | Bank | 340 | ||
P’s Loan | 48,000 | Stock (18,400 – 2,400) | 16,000 | ||
Claims for Damages | 3,480 | Current A/cs: | |||
Q
|
3,800 | ||||
R
|
1,340 | 5,140 | |||
1,22,680 | 1,22,680 | ||||
Working Notes:
WN 1: Calculation of Gaining Ratio
Bank Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Balance b/d | 32,240 | P’s Loan A/c | 10,000 |
P’s Current A/c | 21,900 | ||
Balance c/d | 340 | ||
32,240 | 32,240 | ||
Page No 4.119:
Question 34:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Plant & Equipment A/c | 6,000 | Building A/c | 24,000 | |
Provision for Doubtful Debts A/c | 800 | Creditors A/c | 1,000 | |
Stock A/c | 2,400 | |||
Outstanding Salary A/c | 5,000 | |||
Claim for Damages | 3,480 | |||
Profit transferred to: | ||||
P’s Capital A/c
|
3,660 | |||
Q’s Capital A/c
|
2,440 | |||
R’s Capital A/c
|
1,220 | 7,320 | ||
25,000 | 25,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
P’s Loan A/c | 48,000 | − | − | Balance b/d | 48,000 | 24,000 | 12,000 | ||
Balance c/d | − | 24,000 | 12,000 | ||||||
48,000 | 24,000 | 12,000 | 48,000 | 24,000 | 12,000 | ||||
Partners’ Current Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
P’s Current A/c | − | 9,600 | 4,800 | Balance b/d | 3,840 | 3,360 | 2,240 | ||
Bank A/c | 21,900 | − | − | Q’s Current A/c | 9,600 | − | − | ||
R’s Current A/c | 4,800 | − | − | ||||||
Revaluation A/c | 3,660 | 2,440 | 1,220 | ||||||
Balance c/d | − | 3,800 | 1,340 | ||||||
21,900 | 9,600 | 4,800 | 21,900 | 9,600 | 4,800 | ||||
Balance Sheet
as on March 31, 2016
|
|||||
Liabilities | Amount (Rs) |
Assets | Amount (Rs) | ||
Capital A/cs: | Building (24,000 + 24,000) | 48,000 | |||
Q
|
24,000 | Debtors | 24,800 | ||
R
|
12,000 | 36,000 |
Less: Provision for Doubtful Debts
|
3,200 | 21,600 |
Creditors (31,200 – 1,000) | 30,200 | Plant & Equipment | 31,600 | ||
Outstanding Salary | 5,000 | Bank | 340 | ||
P’s Loan | 48,000 | Stock (18,400 – 2,400) | 16,000 | ||
Claims for Damages | 3,480 | Current A/cs: | |||
Q
|
3,800 | ||||
R
|
1,340 | 5,140 | |||
1,22,680 | 1,22,680 | ||||
Working Notes:
WN 1: Calculation of Gaining Ratio
Bank Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Balance b/d | 32,240 | P’s Loan A/c | 10,000 |
P’s Current A/c | 21,900 | ||
Balance c/d | 340 | ||
32,240 | 32,240 | ||
Answer:
Revaluation Account
|
||||||
Dr.
|
|
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Outstanding Claim
|
3,000
|
Building
|
25,000
|
|||
Stock
|
8,000
|
Bad Debts Recovered
|
3,000
|
|||
Provision for Doubtful Debts
|
5,000
|
|
|
|||
Profit transferred to:
|
|
|
|
|||
A
|
4,000
|
|
|
|
||
B
|
6,000
|
|
|
|
||
C
|
2,000
|
12,000
|
|
|
||
|
28,000
|
|
28,000
|
|||
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
|
Balance b/d |
1,00,000 |
2,00,000 |
3,00,000 |
|
Goodwill |
4,000 |
6,000 |
2,000 |
Revaluation A/c |
4,000 |
6,000 |
2,000 |
|
B’s Capital A/c |
18,600 |
|
|
A’s Capital A/c |
|
18,600 |
31,000 |
|
C’s Capital A/c |
31,000 |
|
|
A’s Current A/c |
|
|
1,000 |
|
Bank |
|
|
1,66,000 |
|
|
|
|
|
C’s Loan A/c |
|
|
1,66,000 |
|
|
|
|
|
Balance c/d |
50,400 |
2,18,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,04,000 |
2,24,600 |
3,34,000 |
|
1,04,000 |
2,24,600 |
3,34,000 |
|
|
|
|
|
|
|
|
|
Balance sheet as on April, 01, 2017 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Creditors |
2,00,000 |
Bank (2,96,000 + 3,000 - 1,66,000) |
1,33,000 |
||
Bills Payable |
1,60,000 |
Debtors |
3,00,000 |
|
|
Claim for Workmen Compensation |
8,000 |
Less: Provision for DD |
15,000 |
2,85,000 |
|
Workmen Compensation Reserve |
12,000 |
Stock |
72,000 |
||
Investment Fluctuation Reserve |
6,000 |
Investment |
46,000 |
||
Outstanding Claim |
3,000 |
Building |
2,75,000 |
||
C’s loan |
1,66,000 |
Advertisement Suspense A/c |
12,000 |
||
B’s Current A/c |
600 |
A’s Current A/c |
1,600 |
||
Capital A/cs: |
|
|
|
||
A |
50,400 |
|
|
|
|
B |
2,18,600 |
2,69,000 |
|
|
|
|
|
|
|
||
|
8,24,600 |
|
8,24,600 |
||
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Share in Goodwill:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
A’s Capital A/c |
Dr. |
|
49,600 |
|
|
To B’s Capital A/c |
|
|
|
18,600 |
|
To C’s Capital A/c |
|
|
|
31,000 |
|
(Goodwill adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN3: Calculation of Adjusted Balances:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
A’s Current A/c |
Dr |
|
1,600 |
|
|
To B’s Current A/c |
|
|
|
600 |
|
To C’s Capital A/c |
|
|
|
1,000 |
|
(Reserve adjusted through capital) |
|
|
|
|
|
|
|
|
|
Page No 4.119:
Question 35:
Revaluation Account
|
||||||
Dr.
|
|
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Outstanding Claim
|
3,000
|
Building
|
25,000
|
|||
Stock
|
8,000
|
Bad Debts Recovered
|
3,000
|
|||
Provision for Doubtful Debts
|
5,000
|
|
|
|||
Profit transferred to:
|
|
|
|
|||
A
|
4,000
|
|
|
|
||
B
|
6,000
|
|
|
|
||
C
|
2,000
|
12,000
|
|
|
||
|
28,000
|
|
28,000
|
|||
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
|
Balance b/d |
1,00,000 |
2,00,000 |
3,00,000 |
|
Goodwill |
4,000 |
6,000 |
2,000 |
Revaluation A/c |
4,000 |
6,000 |
2,000 |
|
B’s Capital A/c |
18,600 |
|
|
A’s Capital A/c |
|
18,600 |
31,000 |
|
C’s Capital A/c |
31,000 |
|
|
A’s Current A/c |
|
|
1,000 |
|
Bank |
|
|
1,66,000 |
|
|
|
|
|
C’s Loan A/c |
|
|
1,66,000 |
|
|
|
|
|
Balance c/d |
50,400 |
2,18,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,04,000 |
2,24,600 |
3,34,000 |
|
1,04,000 |
2,24,600 |
3,34,000 |
|
|
|
|
|
|
|
|
|
Balance sheet as on April, 01, 2017 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Creditors |
2,00,000 |
Bank (2,96,000 + 3,000 - 1,66,000) |
1,33,000 |
||
Bills Payable |
1,60,000 |
Debtors |
3,00,000 |
|
|
Claim for Workmen Compensation |
8,000 |
Less: Provision for DD |
15,000 |
2,85,000 |
|
Workmen Compensation Reserve |
12,000 |
Stock |
72,000 |
||
Investment Fluctuation Reserve |
6,000 |
Investment |
46,000 |
||
Outstanding Claim |
3,000 |
Building |
2,75,000 |
||
C’s loan |
1,66,000 |
Advertisement Suspense A/c |
12,000 |
||
B’s Current A/c |
600 |
A’s Current A/c |
1,600 |
||
Capital A/cs: |
|
|
|
||
A |
50,400 |
|
|
|
|
B |
2,18,600 |
2,69,000 |
|
|
|
|
|
|
|
||
|
8,24,600 |
|
8,24,600 |
||
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Share in Goodwill:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
A’s Capital A/c |
Dr. |
|
49,600 |
|
|
To B’s Capital A/c |
|
|
|
18,600 |
|
To C’s Capital A/c |
|
|
|
31,000 |
|
(Goodwill adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN3: Calculation of Adjusted Balances:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
A’s Current A/c |
Dr |
|
1,600 |
|
|
To B’s Current A/c |
|
|
|
600 |
|
To C’s Capital A/c |
|
|
|
1,000 |
|
(Reserve adjusted through capital) |
|
|
|
|
|
|
|
|
|
Answer:
Revaluation Account | ||||
Particulars | Amount (Rs) |
Particulars | Amount (Rs) | |
Plant A/c | 80,000 | Building A/c | 2,00,000 | |
Provision for Doubtful Debts A/c | 30,000 | |||
Furniture A/c | 12,000 | |||
Profit transferred to: | ||||
X’s Capital A/c
|
39,000 | |||
Y’s Capital A/c
|
26,000 | |||
Z’s Capital A/c
|
13,000 | 78,000 | ||
2,00,000 | 2,00,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Z’s Capital A/c | 72,000 | 48,000 | − | Balance b/d | 9,00,000 | 7,00,000 | 5,00,000 | ||
Bank A/c | − | − | 7,23,000 | General Reserve A/c | 1,50,000 | 1,00,000 | 50,000 | ||
Balance c/d | 15,64,800 | 11,43,200 | − | Workmen Compensation Reserve A/c | 1,20,000 | 80,000 | 40,000 | ||
Revaluation A/c | 39,000 | 26,000 | 13,000 | ||||||
X’s Capital A/c | − | − | 72,000 | ||||||
Y’s Capital A/c | − | − | 48,000 | ||||||
Bank A/c | 4,27,800 | 2,85,200 | − | ||||||
16,36,800 | 11,91,200 | 7,23,000 | 16,36,800 | 11,91,200 | 7,23,000 | ||||
Balance Sheet
as on March 31, 2016
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Building (10,00,000 + 2,00,000) | 12,00,000 | |||
X
|
15,64,800 | Debtors | 6,00,000 | ||
Z
|
11,43,200 | 27,08,000 |
Less: Provision for Doubtful Debts
|
30,000 | 5,70,000 |
Creditors | 4,10,000 | Plant (8,00,000 – 80,000) | 7,20,000 | ||
Furniture (80,000 – 12,000) | 68,000 | ||||
Cash at Bank | 60,000 | ||||
Stock | 5,00,000 | ||||
31,18,000 | 31,18,000 | ||||
Working Notes: Calculation of Cash to be brought in by X and Y
Amount to be paid to Z – Cash at Bank + Minimum Cash Balance
7,23,000 – 70,000 + 60,000 = Rs 7,13,000
Thus, amount to be brought in by X = Rs 4,27,800
Amount to be brought in by Y = Rs 2,85,200
Page No 4.120:
Question 36:
Revaluation Account | ||||
Particulars | Amount (Rs) |
Particulars | Amount (Rs) | |
Plant A/c | 80,000 | Building A/c | 2,00,000 | |
Provision for Doubtful Debts A/c | 30,000 | |||
Furniture A/c | 12,000 | |||
Profit transferred to: | ||||
X’s Capital A/c
|
39,000 | |||
Y’s Capital A/c
|
26,000 | |||
Z’s Capital A/c
|
13,000 | 78,000 | ||
2,00,000 | 2,00,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Z’s Capital A/c | 72,000 | 48,000 | − | Balance b/d | 9,00,000 | 7,00,000 | 5,00,000 | ||
Bank A/c | − | − | 7,23,000 | General Reserve A/c | 1,50,000 | 1,00,000 | 50,000 | ||
Balance c/d | 15,64,800 | 11,43,200 | − | Workmen Compensation Reserve A/c | 1,20,000 | 80,000 | 40,000 | ||
Revaluation A/c | 39,000 | 26,000 | 13,000 | ||||||
X’s Capital A/c | − | − | 72,000 | ||||||
Y’s Capital A/c | − | − | 48,000 | ||||||
Bank A/c | 4,27,800 | 2,85,200 | − | ||||||
16,36,800 | 11,91,200 | 7,23,000 | 16,36,800 | 11,91,200 | 7,23,000 | ||||
Balance Sheet
as on March 31, 2016
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Building (10,00,000 + 2,00,000) | 12,00,000 | |||
X
|
15,64,800 | Debtors | 6,00,000 | ||
Z
|
11,43,200 | 27,08,000 |
Less: Provision for Doubtful Debts
|
30,000 | 5,70,000 |
Creditors | 4,10,000 | Plant (8,00,000 – 80,000) | 7,20,000 | ||
Furniture (80,000 – 12,000) | 68,000 | ||||
Cash at Bank | 60,000 | ||||
Stock | 5,00,000 | ||||
31,18,000 | 31,18,000 | ||||
Working Notes: Calculation of Cash to be brought in by X and Y
Amount to be paid to Z – Cash at Bank + Minimum Cash Balance
7,23,000 – 70,000 + 60,000 = Rs 7,13,000
Thus, amount to be brought in by X = Rs 4,27,800
Amount to be brought in by Y = Rs 2,85,200
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
X’s Capital A/c | Dr. | 4,300 | |||
To Cash A/c
|
4,300 | ||||
(Excess balance of cash withdrawn by X) | |||||
Cash A/c | Dr. | 2,700 | |||
To Z’s Capital A/c
|
2,700 | ||||
(Deficiency amount brought in by Z) | |||||
Working Notes: Calculation of Cash to be brought in or paid to X and Z
Page No 4.120:
Question 37:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
X’s Capital A/c | Dr. | 4,300 | |||
To Cash A/c
|
4,300 | ||||
(Excess balance of cash withdrawn by X) | |||||
Cash A/c | Dr. | 2,700 | |||
To Z’s Capital A/c
|
2,700 | ||||
(Deficiency amount brought in by Z) | |||||
Working Notes: Calculation of Cash to be brought in or paid to X and Z
Answer:
Note: Since, Z's New Capital is more than his Existing Capital, therefore Z will bring in Rs 4,500 (not withdraw, as given in the textbook).
Page No 4.120:
Question 38:
Note: Since, Z's New Capital is more than his Existing Capital, therefore Z will bring in Rs 4,500 (not withdraw, as given in the textbook).
Answer:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Plant (30,000 × 10%) |
3,000 |
Expenses Owing (2,000 – 1,500) |
500 |
|
|
|
Patents (4,000 – 3,000) |
1,000 |
|
|
|
Loss transferred to: |
|
|
|
|
Manoj’s Capital A/c |
750 |
|
|
|
Naveen’s Capital A/c |
500 |
|
|
|
Deepak’s Capital A/c |
250 |
1,500 |
|
3,000 |
|
3,000 |
|
|
|
|
|
Partners’ Capital Account |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
Manoj |
Naveen |
Deepak |
Particulars |
Manoj |
Naveen |
Deepak |
|
Revaluation |
750 |
500 |
250 |
Balance b/d |
12,000 |
10,000 |
9,000 |
|
Naveen’s Capital A/c |
1,200 |
|
2,800 |
General Reserve |
3,000 |
2,000 |
1,000 |
|
Naveen’s Loan A/c |
|
15,500 |
|
Manoj Capital A/c |
|
1,200 |
|
|
Balance c/d |
13,050 |
|
6,950 |
Deepak Capital A/c |
|
2,800 |
|
|
|
15,000 |
16,000 |
10,000 |
|
15,000 |
16,000 |
10,000 |
|
|
|
|
|
Balance b/d |
13,050 |
|
6,950 |
|
Balance c/d |
15,000 |
|
10,000 |
Cash A/c |
1,950 |
|
3,050 |
|
|
15,000 |
|
10,000 |
|
15,000 |
|
10,000 |
|
|
|
|
|
|
|
|
|
Balance Sheet |
||||
as on April 01, 2017 |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Expense Owing |
1,500 |
Plant (30,000 – 3,000) |
27,000 |
|
Bills Payable |
5,000 |
Patents |
4,000 |
|
Creditors |
10,000 |
Debtors |
9,500 |
|
Naveen’s Loan |
15,500 |
Stock |
11,000 |
|
Capital A/cs: |
|
Cash (WN 4) |
5,500 |
|
Manoj |
15,000 |
|
|
|
Deepak |
10,000 |
25,000 |
|
|
|
57,000 |
|
57,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Gaining Ratio
Old Ratio = 3 : 2 : 1
Naveen retires from the firm.
New Ratio = 3 : 2
Gaining Ratio = New Ratio – Old Ratio
∴ Gaining Ratio = 3: 7
WN 2 Adjustment of Goodwill
Goodwill of the firm = Rs 12,000
Naveen’s Share of Goodwill =
This share of goodwill is to be distributed between Manoj and Deepak in their gaining ratio (i.e.3 : 7).
WN 3 Adjustment of Capital
Cash Account
|
|||||
Dr. |
Cr. |
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d
|
500
|
|
|
||
Manoj’s Capital
|
1,950
|
|
|
||
Deepak’s Capital
|
3,050
|
Balance c/d
|
5,500
|
||
|
5,500
|
|
5,500
|
||
Page No 4.121:
Question 39:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Plant (30,000 × 10%) |
3,000 |
Expenses Owing (2,000 – 1,500) |
500 |
|
|
|
Patents (4,000 – 3,000) |
1,000 |
|
|
|
Loss transferred to: |
|
|
|
|
Manoj’s Capital A/c |
750 |
|
|
|
Naveen’s Capital A/c |
500 |
|
|
|
Deepak’s Capital A/c |
250 |
1,500 |
|
3,000 |
|
3,000 |
|
|
|
|
|
Partners’ Capital Account |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
Manoj |
Naveen |
Deepak |
Particulars |
Manoj |
Naveen |
Deepak |
|
Revaluation |
750 |
500 |
250 |
Balance b/d |
12,000 |
10,000 |
9,000 |
|
Naveen’s Capital A/c |
1,200 |
|
2,800 |
General Reserve |
3,000 |
2,000 |
1,000 |
|
Naveen’s Loan A/c |
|
15,500 |
|
Manoj Capital A/c |
|
1,200 |
|
|
Balance c/d |
13,050 |
|
6,950 |
Deepak Capital A/c |
|
2,800 |
|
|
|
15,000 |
16,000 |
10,000 |
|
15,000 |
16,000 |
10,000 |
|
|
|
|
|
Balance b/d |
13,050 |
|
6,950 |
|
Balance c/d |
15,000 |
|
10,000 |
Cash A/c |
1,950 |
|
3,050 |
|
|
15,000 |
|
10,000 |
|
15,000 |
|
10,000 |
|
|
|
|
|
|
|
|
|
Balance Sheet |
||||
as on April 01, 2017 |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Expense Owing |
1,500 |
Plant (30,000 – 3,000) |
27,000 |
|
Bills Payable |
5,000 |
Patents |
4,000 |
|
Creditors |
10,000 |
Debtors |
9,500 |
|
Naveen’s Loan |
15,500 |
Stock |
11,000 |
|
Capital A/cs: |
|
Cash (WN 4) |
5,500 |
|
Manoj |
15,000 |
|
|
|
Deepak |
10,000 |
25,000 |
|
|
|
57,000 |
|
57,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Gaining Ratio
Old Ratio = 3 : 2 : 1
Naveen retires from the firm.
New Ratio = 3 : 2
Gaining Ratio = New Ratio – Old Ratio
∴ Gaining Ratio = 3: 7
WN 2 Adjustment of Goodwill
Goodwill of the firm = Rs 12,000
Naveen’s Share of Goodwill =
This share of goodwill is to be distributed between Manoj and Deepak in their gaining ratio (i.e.3 : 7).
WN 3 Adjustment of Capital
Cash Account
|
|||||
Dr. |
Cr. |
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d
|
500
|
|
|
||
Manoj’s Capital
|
1,950
|
|
|
||
Deepak’s Capital
|
3,050
|
Balance c/d
|
5,500
|
||
|
5,500
|
|
5,500
|
||
Answer:
Profit & Loss Adjustment Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Stock A/c | 2,400 | Factory Building A/c | 25,000 | |
Provision for Legal Charges A/c | 3,850 | |||
Provision for Doubtful Debts A/c | 750 | |||
Profit transferred to: | ||||
A’s Capital A/c
|
8,000 | |||
B’s Capital A/c
|
6,000 | |||
C’s Capital A/c
|
4,000 | 18,000 | ||
25,000 | 25,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | A | B | C | Particulars | A | B | C | ||
B’s Capital A/c | 12,000 | − | 6,000 | Balance b/d | 1,00,000 | 75,000 | 50,000 | ||
B’s Loan A/c | − | 99,000 | − | A’s Capital A/c | − | 12,000 | − | ||
Bank A/c (Balancing Figure) | 2,667 | − | 1,333 | C’s Capital A/c | − | 6,000 | − | ||
Balance c/d | 93,333 | − | 46,667 | Profit & Loss Adjustment A/c | 8,000 | 6,000 | 4,000 | ||
1,08,000 | 99,000 | 54,000 | 1,08,000 | 99,000 | 54,000 | ||||
Bank Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Balance b/d | 27,500 | A’s Capital A/c | 2,667 |
C’s Capital A/c | 1,333 | ||
Balance c/d | 23,500 | ||
27,500 | 27,500 | ||
Balance Sheet
as at March 31, 2017
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Factory Building (1,25,000 + 25,000) | 1,50,000 | |||
A
|
93,333 | Debtors | 25,000 | ||
C
|
46,667 | 1,40,000 |
Less: Provision for Doubtful Debts
|
1,250 | 23,750 |
B’s Loan A/c | 99,000 | Stock (40,000 – 2,400) | 37,600 | ||
Creditors | 24,500 | Bank | 23,500 | ||
Bills Payable | 10,000 | Plant & Machinery | 42,500 | ||
Provision for Legal Charges | 3,850 | ||||
2,77,350 | 2,77,350 | ||||
Working Notes: Calculation of New Capital of Existing Partners
Page No 4.121:
Question 40:
Profit & Loss Adjustment Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Stock A/c | 2,400 | Factory Building A/c | 25,000 | |
Provision for Legal Charges A/c | 3,850 | |||
Provision for Doubtful Debts A/c | 750 | |||
Profit transferred to: | ||||
A’s Capital A/c
|
8,000 | |||
B’s Capital A/c
|
6,000 | |||
C’s Capital A/c
|
4,000 | 18,000 | ||
25,000 | 25,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | A | B | C | Particulars | A | B | C | ||
B’s Capital A/c | 12,000 | − | 6,000 | Balance b/d | 1,00,000 | 75,000 | 50,000 | ||
B’s Loan A/c | − | 99,000 | − | A’s Capital A/c | − | 12,000 | − | ||
Bank A/c (Balancing Figure) | 2,667 | − | 1,333 | C’s Capital A/c | − | 6,000 | − | ||
Balance c/d | 93,333 | − | 46,667 | Profit & Loss Adjustment A/c | 8,000 | 6,000 | 4,000 | ||
1,08,000 | 99,000 | 54,000 | 1,08,000 | 99,000 | 54,000 | ||||
Bank Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Balance b/d | 27,500 | A’s Capital A/c | 2,667 |
C’s Capital A/c | 1,333 | ||
Balance c/d | 23,500 | ||
27,500 | 27,500 | ||
Balance Sheet
as at March 31, 2017
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Factory Building (1,25,000 + 25,000) | 1,50,000 | |||
A
|
93,333 | Debtors | 25,000 | ||
C
|
46,667 | 1,40,000 |
Less: Provision for Doubtful Debts
|
1,250 | 23,750 |
B’s Loan A/c | 99,000 | Stock (40,000 – 2,400) | 37,600 | ||
Creditors | 24,500 | Bank | 23,500 | ||
Bills Payable | 10,000 | Plant & Machinery | 42,500 | ||
Provision for Legal Charges | 3,850 | ||||
2,77,350 | 2,77,350 | ||||
Working Notes: Calculation of New Capital of Existing Partners
Answer:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Provision for Doubtful Debts A/c | 1,000 | Creditors A/c | 6,000 | |
Stock A/c | 1,800 | |||
Furniture A/c | 1,500 | |||
Liability for Workmen Compensation A/c | 1,100 | |||
Profit transferred to: | ||||
X’s Capital A/c
|
300 | |||
Y’s Capital A/c
|
200 | |||
Z’s Capital A/c
|
100 | 600 | ||
6,000 | 6,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Y’s Capital A/c | 2,200 | 5,133 | Balance b/d | 40,000 | 40,000 | 30,000 | |||
Goodwill A/c | 5,000 | 3,333 | 1,667 | General Reserve A/c | 6,000 | 4,000 | 2,000 | ||
Bank A/c | 48,200 | X’s Capital A/c | 2,200 | ||||||
Balance c/d | 67,560 | 45,040 | Z’s Capital A/c | 5,133 | |||||
Revaluation A/c | 300 | 200 | 100 | ||||||
Bank A/c (Balancing figure) |
28,460 | 19,740 | |||||||
74,760 | 51,533 | 51,840 | 74,760 | 51,533 | 51,840 | ||||
Balance Sheet
as on March 31, 2016
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Machinery | 70,000 | |||
X
|
67,560 | Debtors | 25,000 | ||
Y
|
45,040 | 1,12,600 |
Less: Provision for Doubtful Debts
|
4,000 | 21,000 |
Creditors (40,000 – 6,000) | 34,000 | Furniture (30,000 – 1,500) | 28,500 | ||
Bills Payable | 6,000 | Bank | 18,000 | ||
Liability for Workmen Compensation | 1,100 | Stock (18,000 – 1,800) | 16,200 | ||
1,53,700 | 1,53,700 | ||||
Working Notes:
WN 1: Calculation of Gaining Ratio
WN 2: Calculation of New Capital
Page No 4.122:
Question 41:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Provision for Doubtful Debts A/c | 1,000 | Creditors A/c | 6,000 | |
Stock A/c | 1,800 | |||
Furniture A/c | 1,500 | |||
Liability for Workmen Compensation A/c | 1,100 | |||
Profit transferred to: | ||||
X’s Capital A/c
|
300 | |||
Y’s Capital A/c
|
200 | |||
Z’s Capital A/c
|
100 | 600 | ||
6,000 | 6,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Y’s Capital A/c | 2,200 | 5,133 | Balance b/d | 40,000 | 40,000 | 30,000 | |||
Goodwill A/c | 5,000 | 3,333 | 1,667 | General Reserve A/c | 6,000 | 4,000 | 2,000 | ||
Bank A/c | 48,200 | X’s Capital A/c | 2,200 | ||||||
Balance c/d | 67,560 | 45,040 | Z’s Capital A/c | 5,133 | |||||
Revaluation A/c | 300 | 200 | 100 | ||||||
Bank A/c (Balancing figure) |
28,460 | 19,740 | |||||||
74,760 | 51,533 | 51,840 | 74,760 | 51,533 | 51,840 | ||||
Balance Sheet
as on March 31, 2016
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Machinery | 70,000 | |||
X
|
67,560 | Debtors | 25,000 | ||
Y
|
45,040 | 1,12,600 |
Less: Provision for Doubtful Debts
|
4,000 | 21,000 |
Creditors (40,000 – 6,000) | 34,000 | Furniture (30,000 – 1,500) | 28,500 | ||
Bills Payable | 6,000 | Bank | 18,000 | ||
Liability for Workmen Compensation | 1,100 | Stock (18,000 – 1,800) | 16,200 | ||
1,53,700 | 1,53,700 | ||||
Working Notes:
WN 1: Calculation of Gaining Ratio
WN 2: Calculation of New Capital
Answer:
Page No 4.122:
Question 42:
Answer:
Revaluation Account | |||
Particulars | Amount (Rs) | Particulars | Amount (Rs) |
Provision for Doubtful Debts A/c | 10,000 | Sundry Creditors A/c | 10,000 |
Stock A/c | 20,000 | Land & Building A/c | 60,000 |
Machinery A/c | 40,000 | ||
70,000 | 70,000 | ||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | Ram | Rahul | Rohit | Particulars | Ram | Rahul | Rohit | ||
Ram’s Capital A/c | − | 30,000 | 60,000 | Balance b/d | 3,00,000 | 2,00,000 | 1,00,000 | ||
Bank A/c | 2,10,000 | − | − | General Reserve A/c | 30,000 | 20,000 | 10,000 | ||
Ram’s Loan A/c | 2,10,000 | − | − | Rahul’s Capital A/c | 30,000 | − | − | ||
Balance c/d | 3,00,000 | 3,00,000 | Rohit’s Capital A/c | 60,000 | − | − | |||
Bank A/c (Balancing figure) |
− | 1,10,000 | 2,50,000 | ||||||
4,20,000 | 3,30,000 | 3,60,000 | 4,20,000 | 3,30,000 | 3,60,000 | ||||
Balance Sheet
as on March 31, 2017
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital : | Machinery (2,00,000 – 40,000) | 1,60,000 | |||
Ram
|
3,00,000 | Debtors | 2,00,000 | ||
Rohit
|
3,00,000 | 6,00,000 |
Less: Provision
|
10,000 | 1,90,000 |
Creditors (2,00,000 – 10,000) | 1,90,000 | Land & Building (2,00,000 + 60,000) | 2,60,000 | ||
Ram’s Loan | 2,10,000 | Bank | 3,10,000 | ||
Stock (1,00,000 – 20,000) | 80,000 | ||||
10,00,000 | 10,00,000 | ||||
Working Notes:
WN 1: Calculation of Gaining Ratio
WN 2: Calculation of New Capital of Rahul and Rohit
Bank Account | |||
Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
Balance b/d | 1,60,000 | Ram’s Capital A/c | 2,10,000 |
Rahul’s Capital A/c | 1,10,000 | Balance c/d | 3,10,000 |
Rohit’s Capital A/c | 2,50,000 | ||
5,20,000 | 5,20,000 | ||
Page No 4.122:
Question 43:
Revaluation Account | |||
Particulars | Amount (Rs) | Particulars | Amount (Rs) |
Provision for Doubtful Debts A/c | 10,000 | Sundry Creditors A/c | 10,000 |
Stock A/c | 20,000 | Land & Building A/c | 60,000 |
Machinery A/c | 40,000 | ||
70,000 | 70,000 | ||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | Ram | Rahul | Rohit | Particulars | Ram | Rahul | Rohit | ||
Ram’s Capital A/c | − | 30,000 | 60,000 | Balance b/d | 3,00,000 | 2,00,000 | 1,00,000 | ||
Bank A/c | 2,10,000 | − | − | General Reserve A/c | 30,000 | 20,000 | 10,000 | ||
Ram’s Loan A/c | 2,10,000 | − | − | Rahul’s Capital A/c | 30,000 | − | − | ||
Balance c/d | 3,00,000 | 3,00,000 | Rohit’s Capital A/c | 60,000 | − | − | |||
Bank A/c (Balancing figure) |
− | 1,10,000 | 2,50,000 | ||||||
4,20,000 | 3,30,000 | 3,60,000 | 4,20,000 | 3,30,000 | 3,60,000 | ||||
Balance Sheet
as on March 31, 2017
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital : | Machinery (2,00,000 – 40,000) | 1,60,000 | |||
Ram
|
3,00,000 | Debtors | 2,00,000 | ||
Rohit
|
3,00,000 | 6,00,000 |
Less: Provision
|
10,000 | 1,90,000 |
Creditors (2,00,000 – 10,000) | 1,90,000 | Land & Building (2,00,000 + 60,000) | 2,60,000 | ||
Ram’s Loan | 2,10,000 | Bank | 3,10,000 | ||
Stock (1,00,000 – 20,000) | 80,000 | ||||
10,00,000 | 10,00,000 | ||||
Working Notes:
WN 1: Calculation of Gaining Ratio
WN 2: Calculation of New Capital of Rahul and Rohit
Bank Account | |||
Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
Balance b/d | 1,60,000 | Ram’s Capital A/c | 2,10,000 |
Rahul’s Capital A/c | 1,10,000 | Balance c/d | 3,10,000 |
Rohit’s Capital A/c | 2,50,000 | ||
5,20,000 | 5,20,000 | ||
Answer:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Investments A/c | 50,000 | Building A/c | 4,00,000 | |
Profit transferred to: | Stock A/c | 1,00,000 | ||
A’s Capital A/c
|
1,80,000 | |||
B’s Capital A/c
|
1,80,000 | |||
C’s Capital A/c
|
90,000 | 4,50,000 | ||
5,00,000 | 5,00,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | A | B | C | Particulars | A | B | C | ||
C’s Capital A/c | 1,06,800 | 1,06,800 | − | Balance b/d | 12,00,000 | 12,00,000 | 8,00,000 | ||
C’s Loan A/c | − | − | 12,93,600 | General Reserve A/c | 3,20,000 | 3,20,000 | 1,60,000 | ||
Balance c/d | 15,93,200 | 15,93,200 | − | A’s Capital A/c | − | − | 1,06,800 | ||
B’s Capital A/c | − | − | 1,06,800 | ||||||
Revaluation A/c | 1,80,000 | 1,80,000 | 90,000 | ||||||
Profit & Loss Suspense A/c | − | − | 30,000 | ||||||
17,00,000 | 17,00,000 | 12,93,600 | 17,00,000 | 17,00,000 | 12,93,600 | ||||
Balance Sheet
as on March 31, 2017
|
||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
Capital A/cs: | Building (20,00,000 + 4,00,000) | 24,00,000 | ||
A
|
15,93,200 | Investments | 2,00,000 | |
B
|
15,93,200 | 31,86,400 | Sundry Debtors | 8,00,000 |
Sundry Creditors | 2,00,000 | Cash in Hand | 2,00,000 | |
C’s Loan | 12,93,600 | Cash at Bank | 4,50,000 | |
Stock (5,00,000 + 1,00,000) | 6,00,000 | |||
Profit & Loss Suspense | 30,000 | |||
46,80,000 | 46,80,000 | |||
Working Notes:
WN 1: Calculation of Goodwill
WN 2: Calculation of C’s Share in Profit
Page No 4.123:
Question 44:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Investments A/c | 50,000 | Building A/c | 4,00,000 | |
Profit transferred to: | Stock A/c | 1,00,000 | ||
A’s Capital A/c
|
1,80,000 | |||
B’s Capital A/c
|
1,80,000 | |||
C’s Capital A/c
|
90,000 | 4,50,000 | ||
5,00,000 | 5,00,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | A | B | C | Particulars | A | B | C | ||
C’s Capital A/c | 1,06,800 | 1,06,800 | − | Balance b/d | 12,00,000 | 12,00,000 | 8,00,000 | ||
C’s Loan A/c | − | − | 12,93,600 | General Reserve A/c | 3,20,000 | 3,20,000 | 1,60,000 | ||
Balance c/d | 15,93,200 | 15,93,200 | − | A’s Capital A/c | − | − | 1,06,800 | ||
B’s Capital A/c | − | − | 1,06,800 | ||||||
Revaluation A/c | 1,80,000 | 1,80,000 | 90,000 | ||||||
Profit & Loss Suspense A/c | − | − | 30,000 | ||||||
17,00,000 | 17,00,000 | 12,93,600 | 17,00,000 | 17,00,000 | 12,93,600 | ||||
Balance Sheet
as on March 31, 2017
|
||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
Capital A/cs: | Building (20,00,000 + 4,00,000) | 24,00,000 | ||
A
|
15,93,200 | Investments | 2,00,000 | |
B
|
15,93,200 | 31,86,400 | Sundry Debtors | 8,00,000 |
Sundry Creditors | 2,00,000 | Cash in Hand | 2,00,000 | |
C’s Loan | 12,93,600 | Cash at Bank | 4,50,000 | |
Stock (5,00,000 + 1,00,000) | 6,00,000 | |||
Profit & Loss Suspense | 30,000 | |||
46,80,000 | 46,80,000 | |||
Working Notes:
WN 1: Calculation of Goodwill
WN 2: Calculation of C’s Share in Profit
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
X’s Capital A/c | Dr. | 1,800 | |||
Y’s Capital A/c | Dr. | 7,200 | |||
Z’s Capital A/c | Dr. | 12,600 | |||
To W’s Capital A/c
|
21,600 | ||||
(W’s share of Profit till retirement shared by X, Y and Z in 1 : 4 :7) | |||||
X’s Capital A/c | Dr. | 5,000 | |||
Y’s Capital A/c | Dr. | 20,000 | |||
Z’s Capital A/c | Dr. | 35,000 | |||
To W’s Capital A/c
|
60,000 | ||||
(W’s share of goodwill adjusted through remaining partners capital accounts) | |||||
General Reserve A/c | Dr. | 50,000 | |||
To W’s Capital A/c
|
20,000 | ||||
To X’s Capital A/c
|
15,000 | ||||
To Y’s Capital A/c
|
10,000 | ||||
To Z’s Capital A/c
|
5,000 | ||||
(General reserve transferred to capital) | |||||
W’s Capital A/c | Dr. | 9,01,600 | |||
To W’s Loan A/c
|
9,01,600 | ||||
(Balance transferred to Loan A/c) | |||||
X’s Capital A/c | Dr. | 2,08,200 | |||
To Bank A/c
|
2,08,200 | ||||
(Amount withdrawn) | |||||
Bank A/c | Dr. | 2,59,800 | |||
To Y’s Capital A/c
|
17,200 | ||||
To Z’s Capital A/c
|
2,42,600 | ||||
(Amount invested in the business) | |||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Particulars | W | X | Y | Z | Particulars | W | X | Y | Z | ||
W’s Capital A/c | − | 6,800 | 27,200 | 47,600 | Balance b/d | 8,00,000 | 6,00,000 | 4,00,000 | 2,00,000 | ||
W’s Loan A/c | 9,01,600 | − | − | − | General Reserve A/c | 20,000 | 15,000 | 10,000 | 5,000 | ||
Bank A/c (Balancing Figure) |
− | 2,08,200 | − | − | X’s Capital A/c | 6,800 | − | − | − | ||
Balance c/d | − | 4,00,000 | 4,00,000 | 4,00,000 | Y’s Capital A/c | 27,200 | − | − | − | ||
Z’s Capital A/c | 47,600 | − | − | − | |||||||
Bank A/c (Balancing Figure) |
− | 17,200 | 2,42,600 | ||||||||
9,01,600 | 6,15,000 | 4,27,200 | 4,47,600 | 9,01,600 | 6,15,000 | 4,27,200 | 4,47,600 | ||||
Working Notes:
WN 1: Calculation of Profit till Retirement
WN 2: Calculation of Gaining Ratio
W : X : Y : Z = 4 : 3 : 2 : 1 (Old)
X : Y : Z = 1 : 1 : 1 (New)
WN 3: Calculation of Goodwill
Page No 4.124:
Question 45:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
X’s Capital A/c | Dr. | 1,800 | |||
Y’s Capital A/c | Dr. | 7,200 | |||
Z’s Capital A/c | Dr. | 12,600 | |||
To W’s Capital A/c
|
21,600 | ||||
(W’s share of Profit till retirement shared by X, Y and Z in 1 : 4 :7) | |||||
X’s Capital A/c | Dr. | 5,000 | |||
Y’s Capital A/c | Dr. | 20,000 | |||
Z’s Capital A/c | Dr. | 35,000 | |||
To W’s Capital A/c
|
60,000 | ||||
(W’s share of goodwill adjusted through remaining partners capital accounts) | |||||
General Reserve A/c | Dr. | 50,000 | |||
To W’s Capital A/c
|
20,000 | ||||
To X’s Capital A/c
|
15,000 | ||||
To Y’s Capital A/c
|
10,000 | ||||
To Z’s Capital A/c
|
5,000 | ||||
(General reserve transferred to capital) | |||||
W’s Capital A/c | Dr. | 9,01,600 | |||
To W’s Loan A/c
|
9,01,600 | ||||
(Balance transferred to Loan A/c) | |||||
X’s Capital A/c | Dr. | 2,08,200 | |||
To Bank A/c
|
2,08,200 | ||||
(Amount withdrawn) | |||||
Bank A/c | Dr. | 2,59,800 | |||
To Y’s Capital A/c
|
17,200 | ||||
To Z’s Capital A/c
|
2,42,600 | ||||
(Amount invested in the business) | |||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Particulars | W | X | Y | Z | Particulars | W | X | Y | Z | ||
W’s Capital A/c | − | 6,800 | 27,200 | 47,600 | Balance b/d | 8,00,000 | 6,00,000 | 4,00,000 | 2,00,000 | ||
W’s Loan A/c | 9,01,600 | − | − | − | General Reserve A/c | 20,000 | 15,000 | 10,000 | 5,000 | ||
Bank A/c (Balancing Figure) |
− | 2,08,200 | − | − | X’s Capital A/c | 6,800 | − | − | − | ||
Balance c/d | − | 4,00,000 | 4,00,000 | 4,00,000 | Y’s Capital A/c | 27,200 | − | − | − | ||
Z’s Capital A/c | 47,600 | − | − | − | |||||||
Bank A/c (Balancing Figure) |
− | 17,200 | 2,42,600 | ||||||||
9,01,600 | 6,15,000 | 4,27,200 | 4,47,600 | 9,01,600 | 6,15,000 | 4,27,200 | 4,47,600 | ||||
Working Notes:
WN 1: Calculation of Profit till Retirement
WN 2: Calculation of Gaining Ratio
W : X : Y : Z = 4 : 3 : 2 : 1 (Old)
X : Y : Z = 1 : 1 : 1 (New)
WN 3: Calculation of Goodwill
Answer:
Revaluation Account | |||
Particulars | Amount (Rs) | Particulars | Amount (Rs) |
Plant A/c | 14,000 | Stock A/c | 10,000 |
Motor Car A/c | 4,000 | Building A/c | 18,000 |
Liability for Gratuity A/c | 20,000 | Provision for Doubtful Debts A/c | 10,000 |
38,000 | 38,000 | ||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Y’s Capital A/c | 12,000 | − | 9,000 | Balance b/d | 1,60,000 | 1,20,000 | 1,00,000 | ||
Y’s Loan A/c | − | 1,56,000 | − | Reserve A/c | 20,000 | 15,000 | 15,000 | ||
Balance c/d | 1,68,000 | − | 1,06,000 | X’s Capital A/c | − | 12,000 | − | ||
Z’s Capital A/c | − | 9,000 | − | ||||||
1,80,000 | 1,56,000 | 1,15,000 | 1,80,000 | 1,56,000 | 1,15,000 | ||||
Balance Sheet
as on April 01, 2016
|
||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
Capital A/cs: | Building (1,80,000 + 18,000) | 1,98,000 | ||
X
|
1,68,000 | Plant (1,40,000 – 14,000) | 1,26,000 | |
Z
|
1,06,000 | 2,74,000 | Debtors | 70,000 |
Creditors | 80,000 | Motor Car (40,000 – 4,000) | 36,000 | |
Y’s Loan | 1,56,000 | Bank | 10,000 | |
Bills Payable | 20,000 | Stock (1,00,000 + 10,000) | 1,10,000 | |
Liability for Gratuity | 20,000 | |||
5,50,000 | 5,50,000 | |||
Y’s Loan Account | ||||||
Dr. | Cr. | |||||
Date | Particulars | Amount (Rs) |
Date | Particulars | Amount (Rs) | |
2018 | 2017 | |||||
March 31 | Balance c/d | 1,71,600 | April 01 | Y’s Capital A/c | 1,56,000 | |
2018 | ||||||
March 31 | Interest A/c | 15,600 | ||||
1,71,600 | 1,71,600 | |||||
2018 | 2018 | |||||
April 01 | Bank A/c (52,000 + 15,600) |
67,600 | April 01 | Balance b/d | 1,71,600 | |
2019 | 2019 | |||||
March 31 | Balance c/d | 1,14,400 | March 31 | Interest A/c | 10,400 | |
1,82,000 | 1,82,000 | |||||
Working Notes: Calculation of Gaining Ratio
Page No 4.124:
Question 46:
Revaluation Account | |||
Particulars | Amount (Rs) | Particulars | Amount (Rs) |
Plant A/c | 14,000 | Stock A/c | 10,000 |
Motor Car A/c | 4,000 | Building A/c | 18,000 |
Liability for Gratuity A/c | 20,000 | Provision for Doubtful Debts A/c | 10,000 |
38,000 | 38,000 | ||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Y’s Capital A/c | 12,000 | − | 9,000 | Balance b/d | 1,60,000 | 1,20,000 | 1,00,000 | ||
Y’s Loan A/c | − | 1,56,000 | − | Reserve A/c | 20,000 | 15,000 | 15,000 | ||
Balance c/d | 1,68,000 | − | 1,06,000 | X’s Capital A/c | − | 12,000 | − | ||
Z’s Capital A/c | − | 9,000 | − | ||||||
1,80,000 | 1,56,000 | 1,15,000 | 1,80,000 | 1,56,000 | 1,15,000 | ||||
Balance Sheet
as on April 01, 2016
|
||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
Capital A/cs: | Building (1,80,000 + 18,000) | 1,98,000 | ||
X
|
1,68,000 | Plant (1,40,000 – 14,000) | 1,26,000 | |
Z
|
1,06,000 | 2,74,000 | Debtors | 70,000 |
Creditors | 80,000 | Motor Car (40,000 – 4,000) | 36,000 | |
Y’s Loan | 1,56,000 | Bank | 10,000 | |
Bills Payable | 20,000 | Stock (1,00,000 + 10,000) | 1,10,000 | |
Liability for Gratuity | 20,000 | |||
5,50,000 | 5,50,000 | |||
Y’s Loan Account | ||||||
Dr. | Cr. | |||||
Date | Particulars | Amount (Rs) |
Date | Particulars | Amount (Rs) | |
2018 | 2017 | |||||
March 31 | Balance c/d | 1,71,600 | April 01 | Y’s Capital A/c | 1,56,000 | |
2018 | ||||||
March 31 | Interest A/c | 15,600 | ||||
1,71,600 | 1,71,600 | |||||
2018 | 2018 | |||||
April 01 | Bank A/c (52,000 + 15,600) |
67,600 | April 01 | Balance b/d | 1,71,600 | |
2019 | 2019 | |||||
March 31 | Balance c/d | 1,14,400 | March 31 | Interest A/c | 10,400 | |
1,82,000 | 1,82,000 | |||||
Working Notes: Calculation of Gaining Ratio
Answer:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Machinery A/c | 60,000 | Land & Building A/c | 60,000 | |
Bad Debts A/c (17,000 – 10,000) | 7,000 | Loss transferred to: | ||
Aruna’s Capital A/c
|
2,000 | |||
Karuna’s Capital A/c
|
3,000 | |||
Varuna’s Capital A/c
|
2,000 | 7,000 | ||
67,000 | 67,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | Aruna | Karuna | Varuna | Particulars | Aruna | Karuna | Varuna | ||
Revaluation A/c | 2,000 | 3,000 | 2,000 | Balance b/d | 2,00,000 | 3,00,000 | 2,00,000 | ||
Aruna’s Capital A/c | − | 20,000 | 20,000 | General Reserve A/c | 10,000 | 15,000 | 10,000 | ||
Bank A/c | 50,000 | − | − | Workmen Compensation Fund A/c | 2,000 | 3,000 | 2,000 | ||
Aruna’s Loan A/c | 2,00,000 | − | − | Karuna’s Capital A/c | 20,000 | − | − | ||
Balance c/d | − | 4,00,000 | 3,00,000 | Varuna’s Capital A/c | 20,000 | − | − | ||
Bank A/c (Balancing Figure) |
1,05,000 | 1,10,000 | |||||||
2,52,000 | 4,23,000 | 3,22,000 | 2,52,000 | 4,23,000 | 3,22,000 | ||||
Bank Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Balance b/d | 1,00,000 | Aruna’s Capital A/c | 50,000 |
Karuna’s Capital | 1,05,000 | Balance c/d | 2,65,000 |
Varuna’s Capital | 1,10,000 | ||
3,15,000 | 3,15,000 | ||
Balance Sheet
as on March 31, 2016
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Land & Building | 2,60,000 | |||
Karuna
|
4,00,000 | Machinery | 2,40,000 | ||
Varuna
|
3,00,000 | 7,00,000 | Debtors | 1,10,000 | |
Aruna’s Loan | 2,00,000 |
Less: Bad Debts
|
17,000 | 93,000 | |
Workmen Compensation Fund | 8,000 | Stock | 1,00,000 | ||
Creditors | 50,000 | Bank | 2,65,000 | ||
9,58,000 | 9,58,000 | ||||
Working Notes:
WN 1: Calculation of Goodwill
WN 2: Calculation of Gaining Ratio
WN 3: Calculation of New Capital
Page No 4.125:
Question 47:
Revaluation Account | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |
Machinery A/c | 60,000 | Land & Building A/c | 60,000 | |
Bad Debts A/c (17,000 – 10,000) | 7,000 | Loss transferred to: | ||
Aruna’s Capital A/c
|
2,000 | |||
Karuna’s Capital A/c
|
3,000 | |||
Varuna’s Capital A/c
|
2,000 | 7,000 | ||
67,000 | 67,000 | |||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | Aruna | Karuna | Varuna | Particulars | Aruna | Karuna | Varuna | ||
Revaluation A/c | 2,000 | 3,000 | 2,000 | Balance b/d | 2,00,000 | 3,00,000 | 2,00,000 | ||
Aruna’s Capital A/c | − | 20,000 | 20,000 | General Reserve A/c | 10,000 | 15,000 | 10,000 | ||
Bank A/c | 50,000 | − | − | Workmen Compensation Fund A/c | 2,000 | 3,000 | 2,000 | ||
Aruna’s Loan A/c | 2,00,000 | − | − | Karuna’s Capital A/c | 20,000 | − | − | ||
Balance c/d | − | 4,00,000 | 3,00,000 | Varuna’s Capital A/c | 20,000 | − | − | ||
Bank A/c (Balancing Figure) |
1,05,000 | 1,10,000 | |||||||
2,52,000 | 4,23,000 | 3,22,000 | 2,52,000 | 4,23,000 | 3,22,000 | ||||
Bank Account | |||
Particulars | Amount (Rs) | Amount (Rs) | |
Balance b/d | 1,00,000 | Aruna’s Capital A/c | 50,000 |
Karuna’s Capital | 1,05,000 | Balance c/d | 2,65,000 |
Varuna’s Capital | 1,10,000 | ||
3,15,000 | 3,15,000 | ||
Balance Sheet
as on March 31, 2016
|
|||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital A/cs: | Land & Building | 2,60,000 | |||
Karuna
|
4,00,000 | Machinery | 2,40,000 | ||
Varuna
|
3,00,000 | 7,00,000 | Debtors | 1,10,000 | |
Aruna’s Loan | 2,00,000 |
Less: Bad Debts
|
17,000 | 93,000 | |
Workmen Compensation Fund | 8,000 | Stock | 1,00,000 | ||
Creditors | 50,000 | Bank | 2,65,000 | ||
9,58,000 | 9,58,000 | ||||
Working Notes:
WN 1: Calculation of Goodwill
WN 2: Calculation of Gaining Ratio
WN 3: Calculation of New Capital
Answer:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Machinery |
3,60,000 |
Building |
2,40,000 |
|||
Bad Debts |
20,000 |
Investment |
70,000 |
|||
|
|
Loss : |
|
|||
|
|
A |
20,000 |
|
||
|
|
B |
30,000 |
|
||
|
|
C |
20,000 |
70,000 |
||
|
|
|
|
|||
|
3,80,000 |
|
3,80,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
||
Revaluation |
20,000 |
30,000 |
20,000 |
Balance b/d |
8,00,000 |
12,00,000 |
8,00,000 |
||
A’s Loan A/c |
8,08,000 |
|
C’s Capital A/c (Goodwill) |
1,60,000 |
|
|
|||
A’s Capital A/c |
|
|
1,60,000 |
C’s Current A/c (Reserve) |
68,000 |
|
|
||
Bank A/c |
2,00,000 |
|
|
Bank (B/Fig.) |
|
30,000 |
9,80,000 |
||
|
|
|
|
|
|
|
|
||
Balance c/d |
|
12,00,000 |
16,00,000 |
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
10,28,000 |
12,30,000 |
17,80,000 |
|
10,28,000 |
12,30,000 |
17,80,000 |
||
|
|
|
|
|
|
|
|
||
Balance Sheet as on April 01, 2017 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Sundry Creditors |
2,00,000 |
Bank |
12,20,000 |
||
Employee Provident Fund |
1,40,000 |
Debtors |
4,40,000 |
|
|
Claim for Workmen Compensation |
32,000 |
Less: Provision for D/D |
60,000 |
3,80,000 |
|
Workmen Compensation Reserve |
28,000 |
Stock |
4,00,000 |
||
Investment Fluctuation Reserve |
60,000 |
Investment |
2,70,000 |
||
A’s loan |
8,08,000 |
Land and Building |
10,40,000 |
||
General Reserve |
80,000 |
Machinery |
8,40,000 |
||
Profit and Losses A/c |
1,00,000 |
Advertisement Expenditure |
30,000 |
||
Capital |
|
C's Current A/c |
68,000 |
||
B |
12,00,000 |
|
|
|
|
C |
16,00,000 |
28,00,000 |
|
|
|
|
|
|
|
||
|
42,48,000 |
|
42,48,000 |
||
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Share of Goodwill:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
C’s Capital A/c |
Dr |
|
1,60,000 |
|
|
To A’s Capital A/c |
|
|
|
1,60,000 |
|
(Goodwill adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN3: Calculation of Adjusted Balances:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
C’s Current A/c |
Dr |
|
68,000 |
|
|
To A’s Capital A/c |
|
|
|
68,000 |
|
(Reserve adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN 4: Calculation of New Capital of B&C
WN 5: Calculation of Bank Balance
Particulars |
Amount (Rs) |
Opening Balance | 4,10,000 |
Add: | |
B's Capital A/c | 30,000 |
C's Capital A/c | 9,80,000 |
Less: | |
A's Capital A/c | 2,00,000 |
Closing Balance | 12,20,000 |
Page No 4.126:
Question 48:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Machinery |
3,60,000 |
Building |
2,40,000 |
|||
Bad Debts |
20,000 |
Investment |
70,000 |
|||
|
|
Loss : |
|
|||
|
|
A |
20,000 |
|
||
|
|
B |
30,000 |
|
||
|
|
C |
20,000 |
70,000 |
||
|
|
|
|
|||
|
3,80,000 |
|
3,80,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
||
Revaluation |
20,000 |
30,000 |
20,000 |
Balance b/d |
8,00,000 |
12,00,000 |
8,00,000 |
||
A’s Loan A/c |
8,08,000 |
|
C’s Capital A/c (Goodwill) |
1,60,000 |
|
|
|||
A’s Capital A/c |
|
|
1,60,000 |
C’s Current A/c (Reserve) |
68,000 |
|
|
||
Bank A/c |
2,00,000 |
|
|
Bank (B/Fig.) |
|
30,000 |
9,80,000 |
||
|
|
|
|
|
|
|
|
||
Balance c/d |
|
12,00,000 |
16,00,000 |
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
10,28,000 |
12,30,000 |
17,80,000 |
|
10,28,000 |
12,30,000 |
17,80,000 |
||
|
|
|
|
|
|
|
|
||
Balance Sheet as on April 01, 2017 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Sundry Creditors |
2,00,000 |
Bank |
12,20,000 |
||
Employee Provident Fund |
1,40,000 |
Debtors |
4,40,000 |
|
|
Claim for Workmen Compensation |
32,000 |
Less: Provision for D/D |
60,000 |
3,80,000 |
|
Workmen Compensation Reserve |
28,000 |
Stock |
4,00,000 |
||
Investment Fluctuation Reserve |
60,000 |
Investment |
2,70,000 |
||
A’s loan |
8,08,000 |
Land and Building |
10,40,000 |
||
General Reserve |
80,000 |
Machinery |
8,40,000 |
||
Profit and Losses A/c |
1,00,000 |
Advertisement Expenditure |
30,000 |
||
Capital |
|
C's Current A/c |
68,000 |
||
B |
12,00,000 |
|
|
|
|
C |
16,00,000 |
28,00,000 |
|
|
|
|
|
|
|
||
|
42,48,000 |
|
42,48,000 |
||
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Share of Goodwill:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
C’s Capital A/c |
Dr |
|
1,60,000 |
|
|
To A’s Capital A/c |
|
|
|
1,60,000 |
|
(Goodwill adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN3: Calculation of Adjusted Balances:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
C’s Current A/c |
Dr |
|
68,000 |
|
|
To A’s Capital A/c |
|
|
|
68,000 |
|
(Reserve adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN 4: Calculation of New Capital of B&C
WN 5: Calculation of Bank Balance
Particulars |
Amount (Rs) |
Opening Balance | 4,10,000 |
Add: | |
B's Capital A/c | 30,000 |
C's Capital A/c | 9,80,000 |
Less: | |
A's Capital A/c | 2,00,000 |
Closing Balance | 12,20,000 |
Answer:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Machinery |
30,000 |
Building |
80,000 |
|||
Provision for Doubtful Debts |
5,000 |
Stock |
33,000 |
|||
Furniture |
8,400 |
Computer |
5,000 |
|||
Outstanding Claim |
5,000 |
|
|
|||
Profit transferred to: |
|
|
|
|||
A |
34,800 |
|
|
|
||
B |
11,600 |
|
|
|
||
C |
23,200 |
69,600 |
|
|
||
|
1,18,000 |
|
1,18,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
||
Advertisement Suspense |
30,000 |
10,000 |
20,000 |
Balance b/d |
3,00,000 |
3,00,000 |
2,80,000 |
||
C’s Capital A/c |
52,500 |
17,500 |
|
General Reserve |
90,000 |
30,000 |
60,000 |
||
C’s Loan A/c |
|
|
4,13,200 |
Revaluation A/c |
34,800 |
11,600 |
23,200 |
||
A's Current A/c |
|
1,50,000 |
|
A’s Capital A/c |
|
|
52,500 |
||
Balance c/d |
4,92,300 |
1,64,100 |
|
B’s Capital A/c |
|
|
17,500 |
||
|
|
|
|
B's Current A/c |
1,50,000 |
|
|
||
|
|
|
|
|
|
|
|
||
|
5,74,800 |
3,41,600 |
4,33,200 |
|
5,74,800 |
3,41,600 |
4,33,200 |
||
|
|
|
|
|
|
|
|
||
Balance sheet as on April 01, 2017 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Creditors |
1,80,000 |
Cash (70,000+5,000) |
75,000 |
||
Bills Payable |
1,20,000 |
Debtors |
2,00,000 |
|
|
Outstanding Claim |
5,000 |
Less : Provision for D/D |
15,000 |
1,85,000 |
|
C’s loan |
4,13,200 |
Building |
4,80,000 |
||
A’s Current A/c |
1,50,000 |
Machinery |
2,70,000 |
||
Capital |
|
Stock |
2,53,000 |
||
A |
4,92,300 |
|
Furniture |
1,11,600 |
|
B |
1,64,100 |
6,56,400 |
B’s Current A/c |
1,50,000 |
|
|
|
|
|
||
|
15,24,600 |
|
15,24,600 |
||
|
|
|
|
Working Notes:
WN1: Calculation of Share in Goodwill:
WN2: Calculation of New Capitals of A and B
Page No 4.126:
Question 49:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Machinery |
30,000 |
Building |
80,000 |
|||
Provision for Doubtful Debts |
5,000 |
Stock |
33,000 |
|||
Furniture |
8,400 |
Computer |
5,000 |
|||
Outstanding Claim |
5,000 |
|
|
|||
Profit transferred to: |
|
|
|
|||
A |
34,800 |
|
|
|
||
B |
11,600 |
|
|
|
||
C |
23,200 |
69,600 |
|
|
||
|
1,18,000 |
|
1,18,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
||
Advertisement Suspense |
30,000 |
10,000 |
20,000 |
Balance b/d |
3,00,000 |
3,00,000 |
2,80,000 |
||
C’s Capital A/c |
52,500 |
17,500 |
|
General Reserve |
90,000 |
30,000 |
60,000 |
||
C’s Loan A/c |
|
|
4,13,200 |
Revaluation A/c |
34,800 |
11,600 |
23,200 |
||
A's Current A/c |
|
1,50,000 |
|
A’s Capital A/c |
|
|
52,500 |
||
Balance c/d |
4,92,300 |
1,64,100 |
|
B’s Capital A/c |
|
|
17,500 |
||
|
|
|
|
B's Current A/c |
1,50,000 |
|
|
||
|
|
|
|
|
|
|
|
||
|
5,74,800 |
3,41,600 |
4,33,200 |
|
5,74,800 |
3,41,600 |
4,33,200 |
||
|
|
|
|
|
|
|
|
||
Balance sheet as on April 01, 2017 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Creditors |
1,80,000 |
Cash (70,000+5,000) |
75,000 |
||
Bills Payable |
1,20,000 |
Debtors |
2,00,000 |
|
|
Outstanding Claim |
5,000 |
Less : Provision for D/D |
15,000 |
1,85,000 |
|
C’s loan |
4,13,200 |
Building |
4,80,000 |
||
A’s Current A/c |
1,50,000 |
Machinery |
2,70,000 |
||
Capital |
|
Stock |
2,53,000 |
||
A |
4,92,300 |
|
Furniture |
1,11,600 |
|
B |
1,64,100 |
6,56,400 |
B’s Current A/c |
1,50,000 |
|
|
|
|
|
||
|
15,24,600 |
|
15,24,600 |
||
|
|
|
|
Working Notes:
WN1: Calculation of Share in Goodwill:
WN2: Calculation of New Capitals of A and B
Answer:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Fixed Assets |
5,000 |
Creditors |
4,000 |
|||
Provision for Doubtful Debts |
10,000 |
Loss transferred to: |
|
|||
|
|
X |
5,500 |
|
||
|
|
Y |
3,300 |
|
||
|
|
Z |
2,200 |
11,000 |
||
|
|
|
|
|||
|
15,000 |
|
15,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
||
Revaluation |
5,500 |
3,300 |
2,200 |
Balance b/d |
80,000 |
1,24,000 |
66,000 |
||
Goodwill |
50,000 |
30,000 |
20,000 |
Y’s Capital A/c (Goodwill) |
16,000 |
|
|
||
X’s Capital A/c |
|
16,000 |
64,000 |
Z’s Capital A/c |
64,000 |
|
|
||
X’s Capital A/c |
|
27,400 |
1,09,600 |
Y’s Capital A/c (Reserve) |
27,400 |
|
|
||
Bank A/c |
2,41,500 |
|
|
Z’s Capital A/c |
1,09,600 |
|
|
||
Balance c/d |
|
50,000 |
75,000 |
Bank (B/Fig.) |
|
2,700 |
2,04,800 |
||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
2,97,000 |
1,26,700 |
2,70,800 |
|
2,97,000 |
1,26,700 |
2,70,800 |
||
|
|
|
|
|
|
|
|
||
Balance sheet as on April 01, 2017 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
80,000 |
Debtors |
2,00,000 |
|
|
Claim for Workmen Compensation |
16,000 |
Less: Provision for D/D |
10,000 |
1,90,000 |
|
Workmen Compensation Reserve |
84,000 |
Stock |
1,60,000 |
||
Profit and Loss A/c |
1,70,000 |
Bank (80,000+2,700+2,04,800-2,41,500-16,000) |
30,000 |
||
General Reserve |
20,000 |
Fixed Assets |
1,15,000 |
||
Capital |
|
|
|
||
Y |
50,000 |
|
|
|
|
Z |
75,000 |
1,25,000 |
|
|
|
|
|
|
|
||
|
4,95,000 |
|
4,95,000 |
||
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Share in Goodwill:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Y’s Capital A/c |
Dr |
|
16,000 |
|
|
Z’s Capital A/c |
Dr. |
|
64,000 |
|
|
To X’s Capital A/c |
|
|
|
80,000 |
|
(Goodwill adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN 3: Calculation of Adjusted Balances
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Y’s Capital A/c |
Dr |
|
27,400 |
|
|
Z’s Capital A/c |
Dr. |
|
1,09,600 |
|
|
To X’s Capital A/c |
|
|
|
1,37,000 |
|
(Reserve adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN4: Calculation of New Capitals of Y&Z
Page No 4.127:
Question 50:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Fixed Assets |
5,000 |
Creditors |
4,000 |
|||
Provision for Doubtful Debts |
10,000 |
Loss transferred to: |
|
|||
|
|
X |
5,500 |
|
||
|
|
Y |
3,300 |
|
||
|
|
Z |
2,200 |
11,000 |
||
|
|
|
|
|||
|
15,000 |
|
15,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
||
Revaluation |
5,500 |
3,300 |
2,200 |
Balance b/d |
80,000 |
1,24,000 |
66,000 |
||
Goodwill |
50,000 |
30,000 |
20,000 |
Y’s Capital A/c (Goodwill) |
16,000 |
|
|
||
X’s Capital A/c |
|
16,000 |
64,000 |
Z’s Capital A/c |
64,000 |
|
|
||
X’s Capital A/c |
|
27,400 |
1,09,600 |
Y’s Capital A/c (Reserve) |
27,400 |
|
|
||
Bank A/c |
2,41,500 |
|
|
Z’s Capital A/c |
1,09,600 |
|
|
||
Balance c/d |
|
50,000 |
75,000 |
Bank (B/Fig.) |
|
2,700 |
2,04,800 |
||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
2,97,000 |
1,26,700 |
2,70,800 |
|
2,97,000 |
1,26,700 |
2,70,800 |
||
|
|
|
|
|
|
|
|
||
Balance sheet as on April 01, 2017 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
80,000 |
Debtors |
2,00,000 |
|
|
Claim for Workmen Compensation |
16,000 |
Less: Provision for D/D |
10,000 |
1,90,000 |
|
Workmen Compensation Reserve |
84,000 |
Stock |
1,60,000 |
||
Profit and Loss A/c |
1,70,000 |
Bank (80,000+2,700+2,04,800-2,41,500-16,000) |
30,000 |
||
General Reserve |
20,000 |
Fixed Assets |
1,15,000 |
||
Capital |
|
|
|
||
Y |
50,000 |
|
|
|
|
Z |
75,000 |
1,25,000 |
|
|
|
|
|
|
|
||
|
4,95,000 |
|
4,95,000 |
||
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Share in Goodwill:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Y’s Capital A/c |
Dr |
|
16,000 |
|
|
Z’s Capital A/c |
Dr. |
|
64,000 |
|
|
To X’s Capital A/c |
|
|
|
80,000 |
|
(Goodwill adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN 3: Calculation of Adjusted Balances
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Y’s Capital A/c |
Dr |
|
27,400 |
|
|
Z’s Capital A/c |
Dr. |
|
1,09,600 |
|
|
To X’s Capital A/c |
|
|
|
1,37,000 |
|
(Reserve adjusted through capital) |
|
|
|
|
|
|
|
|
|
WN4: Calculation of New Capitals of Y&Z
Answer:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Stock |
5,000 |
Fixed Assets |
25,000 |
|||
Profit transferred to: |
|
|
|
|||
X’s Capital A/c |
10,000 |
|
|
|
||
Y’s Capital A/c |
6,000 |
|
|
|
||
Z’s Capital A/c |
4,000 |
20,000 |
|
|
||
|
25,000 |
|
25,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
Y’s Capital A/c |
11,000 |
|
22,000 |
Balance b/d |
1,00,000 |
50,000 |
40,000 |
|
Advertisement Expenditure A/c |
2,500 |
1,500 |
1,000 |
Revaluation A/c |
10,000 |
6,000 |
4,000 |
|
Goodwill A/c |
7,500 |
4,500 |
3,000 |
General Reserve |
10,000 |
6,000 |
4,000 |
|
Bank A/c |
|
89,000 |
|
X’s Capital A/c |
|
11,000 |
|
|
Balance c/d (WN3) |
1,20,000 |
|
80,000 |
Z’s Capital A/c |
|
22,000 |
|
|
|
|
|
|
Bank A/c (Bal. Fig.) |
21,000 |
|
58,000 |
|
|
1,41,000 |
95,000 |
1,06,000 |
|
1,41,000 |
95,000 |
1,06,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as at April 01, 2016 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital A/cs: |
|
|
|
||
X |
1,20,000 |
|
Fixed Assets |
1,15,000 |
|
Z |
80,000 |
2,00,000 |
Add: Undervaluation |
25,000 |
1,40,000 |
Employees’ Provident Fund |
3,500 |
Stock |
55,000 |
|
|
Sundry Creditors |
26,500 |
Less: Overvaluation |
5,000 |
50,000 |
|
|
|
Sundry Debtors |
|
30,000 |
|
|
|
Bank |
10,000 |
||
|
2,30,000 |
|
2,30,000 |
||
|
|
|
|
Working Notes:
WN 1: Calculation of sacrificing/gaining ratio
WN 2: Calculation of goodwill
WN 3: Calculation of New Capital of X and Y
Page No 4.127:
Question 51:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Stock |
5,000 |
Fixed Assets |
25,000 |
|||
Profit transferred to: |
|
|
|
|||
X’s Capital A/c |
10,000 |
|
|
|
||
Y’s Capital A/c |
6,000 |
|
|
|
||
Z’s Capital A/c |
4,000 |
20,000 |
|
|
||
|
25,000 |
|
25,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
Y’s Capital A/c |
11,000 |
|
22,000 |
Balance b/d |
1,00,000 |
50,000 |
40,000 |
|
Advertisement Expenditure A/c |
2,500 |
1,500 |
1,000 |
Revaluation A/c |
10,000 |
6,000 |
4,000 |
|
Goodwill A/c |
7,500 |
4,500 |
3,000 |
General Reserve |
10,000 |
6,000 |
4,000 |
|
Bank A/c |
|
89,000 |
|
X’s Capital A/c |
|
11,000 |
|
|
Balance c/d (WN3) |
1,20,000 |
|
80,000 |
Z’s Capital A/c |
|
22,000 |
|
|
|
|
|
|
Bank A/c (Bal. Fig.) |
21,000 |
|
58,000 |
|
|
1,41,000 |
95,000 |
1,06,000 |
|
1,41,000 |
95,000 |
1,06,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as at April 01, 2016 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital A/cs: |
|
|
|
||
X |
1,20,000 |
|
Fixed Assets |
1,15,000 |
|
Z |
80,000 |
2,00,000 |
Add: Undervaluation |
25,000 |
1,40,000 |
Employees’ Provident Fund |
3,500 |
Stock |
55,000 |
|
|
Sundry Creditors |
26,500 |
Less: Overvaluation |
5,000 |
50,000 |
|
|
|
Sundry Debtors |
|
30,000 |
|
|
|
Bank |
10,000 |
||
|
2,30,000 |
|
2,30,000 |
||
|
|
|
|
Working Notes:
WN 1: Calculation of sacrificing/gaining ratio
WN 2: Calculation of goodwill
WN 3: Calculation of New Capital of X and Y
Answer:
Journal | ||||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
Profit and Loss Suspense A/c | Dr. | 1,025 | ||||
To X’s Capital A/c | 1,025 | |||||
(X’s share of profit till his death credited to his account) |
Working Notes: Calculation of X’s Share of Profit
Page No 4.127:
Question 52:
Journal | ||||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
Profit and Loss Suspense A/c | Dr. | 1,025 | ||||
To X’s Capital A/c | 1,025 | |||||
(X’s share of profit till his death credited to his account) |
Working Notes: Calculation of X’s Share of Profit
Answer:
Sales for the year 2013-14 = Rs 7,50,000
Sales from April 01, 2014 to June 30, 2014 = Rs 2,50,000
Profit for the year 2013-14 = Rs 75,000
Page No 4.128:
Question 53:
Sales for the year 2013-14 = Rs 7,50,000
Sales from April 01, 2014 to June 30, 2014 = Rs 2,50,000
Profit for the year 2013-14 = Rs 75,000
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
X’s Capital A/c |
Dr. |
|
36,000 |
|
|
Z’s Capital A/c |
Dr. |
|
84,000 |
|
|
To Y’s Capital A/c |
|
|
|
1,20,000 |
|
( Y's Capital A/c credited for his share of profit till date of his death) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2:
Page No 4.128:
Question 54:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
X’s Capital A/c |
Dr. |
|
36,000 |
|
|
Z’s Capital A/c |
Dr. |
|
84,000 |
|
|
To Y’s Capital A/c |
|
|
|
1,20,000 |
|
( Y's Capital A/c credited for his share of profit till date of his death) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2:
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
1. |
Profit & Loss Suspense A/c |
Dr |
|
1,000 |
|
|
To Z’s Capital A/c |
|
|
|
1,000 |
|
(Profit adjusted through capital) |
|
|
|
|
|
|
|
|
|
|
2. |
X’s Capital A/c |
Dr. |
|
800 |
|
|
Y’s Capital A/c |
Dr. |
|
200 |
|
|
To Z’s Capital A/c |
|
|
|
1,000 |
|
(Profit adjusted through capital) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Z's Profit Share
Page No 4.128:
Question 55:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
1. |
Profit & Loss Suspense A/c |
Dr |
|
1,000 |
|
|
To Z’s Capital A/c |
|
|
|
1,000 |
|
(Profit adjusted through capital) |
|
|
|
|
|
|
|
|
|
|
2. |
X’s Capital A/c |
Dr. |
|
800 |
|
|
Y’s Capital A/c |
Dr. |
|
200 |
|
|
To Z’s Capital A/c |
|
|
|
1,000 |
|
(Profit adjusted through capital) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Z's Profit Share
Answer:
Journal | ||||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
P’s Capital A/c | Dr. | 12,000 | ||||
S’s Capital A/c | Dr. | 33,000 | ||||
To R’s Capital A/c
|
45,000 | |||||
(R’s share of goodwill credited to his account and debited to P and S in their gaining ratio) |
Working Notes:
Total Profit of last 4 Years’ = 1,20,000 + 60,000 – 20,000 + 80,000 = Rs 2,40,000
Gaining Ratio = New Ratio – Old Ratio
Old Ratio = 4 : 3 : 1
New Ratio = 3 : 2
Gaining Ratio = 4 : 11
Page No 4.128:
Question 56:
Journal | ||||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
P’s Capital A/c | Dr. | 12,000 | ||||
S’s Capital A/c | Dr. | 33,000 | ||||
To R’s Capital A/c
|
45,000 | |||||
(R’s share of goodwill credited to his account and debited to P and S in their gaining ratio) |
Working Notes:
Total Profit of last 4 Years’ = 1,20,000 + 60,000 – 20,000 + 80,000 = Rs 2,40,000
Gaining Ratio = New Ratio – Old Ratio
Old Ratio = 4 : 3 : 1
New Ratio = 3 : 2
Gaining Ratio = 4 : 11
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
X’s Capital A/c | Dr. | 24,000 | |||
Z’s Capital A//c | Dr. | 66,000 | |||
To Y’s Capital A/c
|
90,000 | ||||
(Y’s share of goodwill credited to his account and debited to X and Z in their gaining ratio.) |
Working Notes:
Gaining Ratio = New Ratio – Old Ratio
Old Ratio = 4 : 3 : 1
New Ratio = 3 : 2
Gaining Ratio = 4 : 11
Total Profit = 3,00,000 + 1,10,000 – 90,000 + 1,60,000 = Rs 4,80,000
Goodwill = Average Profit × 2 years of purchase
Goodwill = 1,20,000 × 2 =Rs 2,40,000
Page No 4.128:
Question 57:
Journal | |||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
X’s Capital A/c | Dr. | 24,000 | |||
Z’s Capital A//c | Dr. | 66,000 | |||
To Y’s Capital A/c
|
90,000 | ||||
(Y’s share of goodwill credited to his account and debited to X and Z in their gaining ratio.) |
Working Notes:
Gaining Ratio = New Ratio – Old Ratio
Old Ratio = 4 : 3 : 1
New Ratio = 3 : 2
Gaining Ratio = 4 : 11
Total Profit = 3,00,000 + 1,10,000 – 90,000 + 1,60,000 = Rs 4,80,000
Goodwill = Average Profit × 2 years of purchase
Goodwill = 1,20,000 × 2 =Rs 2,40,000
Answer:
A’s Capital Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Drawings A/c |
1,500 |
Balance b/d |
10,000 |
|
|
B’s Capital A/c (Goodwill) |
6,570 |
A’s Executor’s A/c |
24160.83 |
C’s Capital A/c (Goodwill) |
6,570 |
|
|
Profit and Loss Suspense A/c |
2520.83 |
|
25660.83 |
|
25660.83 |
|
|
|
|
Working Notes:
WN 1 Calculation of Goodwill
∴ Goodwill = 13,140 × 2 = Rs 26,280
WN 2 Adjustment of Goodwill
Old Ratio (A, B and C) = 4 : 2 : 2
A died.
∴ New Ratio = 2 : 2 or 1 : 1 and
Gaining Ratio = 2 : 2 or 1 : 1
A’s Share of Goodwill
This share of goodwill is to be distributed between B and C in their gaining ratio (i.e. 1: 1)
WN 3 Calculation of A’s Share of Profit
A’s Profit Share = Average Profit for last 3 previous years + 10% of Average Profit (for 5 months)
Average profit for last 3 years
10% of Average Profit = 11,000 × 10% = Rs 1,100
∴ A’s Profit Share = Average Profit + 10% of Average Profit
Page No 4.128:
Question 58:
A’s Capital Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Drawings A/c |
1,500 |
Balance b/d |
10,000 |
|
|
B’s Capital A/c (Goodwill) |
6,570 |
A’s Executor’s A/c |
24160.83 |
C’s Capital A/c (Goodwill) |
6,570 |
|
|
Profit and Loss Suspense A/c |
2520.83 |
|
25660.83 |
|
25660.83 |
|
|
|
|
Working Notes:
WN 1 Calculation of Goodwill
∴ Goodwill = 13,140 × 2 = Rs 26,280
WN 2 Adjustment of Goodwill
Old Ratio (A, B and C) = 4 : 2 : 2
A died.
∴ New Ratio = 2 : 2 or 1 : 1 and
Gaining Ratio = 2 : 2 or 1 : 1
A’s Share of Goodwill
This share of goodwill is to be distributed between B and C in their gaining ratio (i.e. 1: 1)
WN 3 Calculation of A’s Share of Profit
A’s Profit Share = Average Profit for last 3 previous years + 10% of Average Profit (for 5 months)
Average profit for last 3 years
10% of Average Profit = 11,000 × 10% = Rs 1,100
∴ A’s Profit Share = Average Profit + 10% of Average Profit
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
60,000 |
|
|
To B’s Capital A/c |
|
|
|
60,000 |
|
(Adjustment of B’s share of Goodwill ) |
|
|
|
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
18,750 |
|
|
To B’s Capital A/c |
|
|
|
18,750 |
|
(Adjustment of B’s share of Profit) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Retiring Partner’s Share of Goodwill
WN3: Calculation of Retiring Partner’s Share of Profit
Page No 4.129:
Question 59:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
60,000 |
|
|
To B’s Capital A/c |
|
|
|
60,000 |
|
(Adjustment of B’s share of Goodwill ) |
|
|
|
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
18,750 |
|
|
To B’s Capital A/c |
|
|
|
18,750 |
|
(Adjustment of B’s share of Profit) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Retiring Partner’s Share of Goodwill
WN3: Calculation of Retiring Partner’s Share of Profit
Answer:
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Furniture A/c | 3,000 | Machinery A/c | 6,500 | |||
Stock A/c | 2,000 | |||||
Profit transferred to: | ||||||
X’s Capital A/c
|
500 | |||||
Y’s Capital A/c
|
500 | |||||
Z’s Capital A/c
|
500 | 1,500 | ||||
6,500 | 6,500 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Z’s Capital A/c | 7,500 | 7,500 | Balance b/d | 50,000 | 50,000 | 50,000 | |||
Z’s Executor A/c | 70,500 | General Reserve A/c | 5,000 | 5,000 | 5,000 | ||||
Balance c/d | 48,000 | 48,000 | Revaluation A/c | 500 | 500 | 500 | |||
X’s Capital A/c | 7,500 | ||||||||
Y’s Capital A/c | 7,500 | ||||||||
55,500 | 55,500 | 70,500 | 55,500 | 55,500 | 70,500 | ||||
Balance Sheet
as on April 01, 2017 after Z’s death
|
|||||
Liabilities | Amount Rs |
Assets | Amount Rs | ||
Machinery | 56,500 | ||||
Capital A/cs: | Furniture | 25,000 | |||
X
|
48,000 | Bills Receivable | 21,000 | ||
Y
|
48,000 | 96,000 | Debtors | 45,000 | |
Creditors | 500 |
Less: Provision for Doubtful Debts
|
3,000 | 42,000 | |
Z’s Executor | 60,500 | Stock | 7,500 | ||
(70,500 – 10,000) | Cash at Bank (15,000 – 10,000) | 5,000 | |||
1,57,000 | 1,57,000 | ||||
Working Notes:
Goodwill = Rs 45,000
Z’s Share =
Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio which is 1 : 1.
Page No 4.129:
Question 60:
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Furniture A/c | 3,000 | Machinery A/c | 6,500 | |||
Stock A/c | 2,000 | |||||
Profit transferred to: | ||||||
X’s Capital A/c
|
500 | |||||
Y’s Capital A/c
|
500 | |||||
Z’s Capital A/c
|
500 | 1,500 | ||||
6,500 | 6,500 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Z’s Capital A/c | 7,500 | 7,500 | Balance b/d | 50,000 | 50,000 | 50,000 | |||
Z’s Executor A/c | 70,500 | General Reserve A/c | 5,000 | 5,000 | 5,000 | ||||
Balance c/d | 48,000 | 48,000 | Revaluation A/c | 500 | 500 | 500 | |||
X’s Capital A/c | 7,500 | ||||||||
Y’s Capital A/c | 7,500 | ||||||||
55,500 | 55,500 | 70,500 | 55,500 | 55,500 | 70,500 | ||||
Balance Sheet
as on April 01, 2017 after Z’s death
|
|||||
Liabilities | Amount Rs |
Assets | Amount Rs | ||
Machinery | 56,500 | ||||
Capital A/cs: | Furniture | 25,000 | |||
X
|
48,000 | Bills Receivable | 21,000 | ||
Y
|
48,000 | 96,000 | Debtors | 45,000 | |
Creditors | 500 |
Less: Provision for Doubtful Debts
|
3,000 | 42,000 | |
Z’s Executor | 60,500 | Stock | 7,500 | ||
(70,500 – 10,000) | Cash at Bank (15,000 – 10,000) | 5,000 | |||
1,57,000 | 1,57,000 | ||||
Working Notes:
Goodwill = Rs 45,000
Z’s Share =
Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio which is 1 : 1.
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
General Reserve A/c |
Dr. |
|
45,000 |
|
To Akhil’s Capital A/c |
|
|
15,000 |
|
To Nikhil’s Capital A/c |
|
|
15,000 |
|
To Sunil’s Capital A/c |
|
|
15,000 |
|
(General Reserve distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
Akhil’s Capital A/c |
Dr. |
|
35,000 |
|
Nikhil’s Capital A/c |
Dr. |
|
35,000 |
|
To Sunil’s Capital A/c |
|
|
70,000 |
|
(Sunil’s share of goodwill adjusted) |
|
|
|
|
|
|
|
|
|
Interest on Capital A/c |
Dr. |
|
1,600 |
|
To Sunil’s Capital A/c |
|
|
1,600 |
|
(Interest allowed on Sunil’s Capital) |
|
|
|
|
|
|
|
|
|
Profit and Loss Suspense A/c |
Dr. |
|
20,000 |
|
To Sunil’s Capital A/c |
|
|
20,000 |
|
(Sunil’s profit share transferred to his capital account) |
|
|
|
|
|
|
|
|
|
Sunil’s Capital A/c |
Dr. |
|
1,86,600 |
|
To Sunil’s Executor’s A/c |
|
|
1,86,600 |
|
(Amount due to Sunil after all adjustments transferred to his Executor’s Account) |
|
|
|
|
|
|
|
|
|
Sunil’s Executor’s A/c |
Dr. |
|
50,000 |
|
To Bank A/c |
|
|
50,000 |
|
(Amount paid to Sunil’s Executor) |
|
|
|
|
|
|
|
|
Sunil’s Capital Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
Balance b/d |
80,000 |
|
|
Interest on Capital A/c |
1,600 |
|
|
General Reserve |
15,000 |
|
|
Profit and Loss Suspense A/c |
20,000 |
|
|
Akhil’s Capital A/c (Goodwill) |
35,000 |
Sunil’s Executor’s A/c |
1,86,600 |
Nikhil’s Capital A/c (Goodwill) |
35,000 |
|
1,86,600 |
|
1,86,600 |
|
|
|
|
Sunil’s Executor’s Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Bank A/c |
50,000 |
Sunil’s Capital A/c |
1,86,600 |
Balance c/d |
1,36,600 |
|
|
|
1,86,600 |
|
1,86,600 |
|
|
|
|
Working Notes:
WN 1 Calculation of Sunil’s Share of Profit
Profit for 2015-16 = Rs 1,80,000
WN 2 Calculation of Goodwill
Goodwill = Average Profit × Number of Year’s Purchase
∴ Goodwill = Average Profit × Number of Years’ Purchase
= 70,000 × 3 = Rs 2,10,000
WN 3 Adjustment of Goodwill
Old Ratio = 1 : 1 : 1
Sunil died.
∴ New Ratio = 1 : 1 and
Gaining Ratio = 1 : 1
Sunil’s Share in Goodwill =
This share of goodwill is to be distributed between Akhil and Nikhil in their gaining ratio (i.e. 1 : 1).
WN 4 Calculation of Interest on Sunil’s Capital
Sunil’s Capital Balance = Rs 80,000
∴ Interest on Capital (for 4 months)
Page No 4.130:
Question 61:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
General Reserve A/c |
Dr. |
|
45,000 |
|
To Akhil’s Capital A/c |
|
|
15,000 |
|
To Nikhil’s Capital A/c |
|
|
15,000 |
|
To Sunil’s Capital A/c |
|
|
15,000 |
|
(General Reserve distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
Akhil’s Capital A/c |
Dr. |
|
35,000 |
|
Nikhil’s Capital A/c |
Dr. |
|
35,000 |
|
To Sunil’s Capital A/c |
|
|
70,000 |
|
(Sunil’s share of goodwill adjusted) |
|
|
|
|
|
|
|
|
|
Interest on Capital A/c |
Dr. |
|
1,600 |
|
To Sunil’s Capital A/c |
|
|
1,600 |
|
(Interest allowed on Sunil’s Capital) |
|
|
|
|
|
|
|
|
|
Profit and Loss Suspense A/c |
Dr. |
|
20,000 |
|
To Sunil’s Capital A/c |
|
|
20,000 |
|
(Sunil’s profit share transferred to his capital account) |
|
|
|
|
|
|
|
|
|
Sunil’s Capital A/c |
Dr. |
|
1,86,600 |
|
To Sunil’s Executor’s A/c |
|
|
1,86,600 |
|
(Amount due to Sunil after all adjustments transferred to his Executor’s Account) |
|
|
|
|
|
|
|
|
|
Sunil’s Executor’s A/c |
Dr. |
|
50,000 |
|
To Bank A/c |
|
|
50,000 |
|
(Amount paid to Sunil’s Executor) |
|
|
|
|
|
|
|
|
Sunil’s Capital Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
Balance b/d |
80,000 |
|
|
Interest on Capital A/c |
1,600 |
|
|
General Reserve |
15,000 |
|
|
Profit and Loss Suspense A/c |
20,000 |
|
|
Akhil’s Capital A/c (Goodwill) |
35,000 |
Sunil’s Executor’s A/c |
1,86,600 |
Nikhil’s Capital A/c (Goodwill) |
35,000 |
|
1,86,600 |
|
1,86,600 |
|
|
|
|
Sunil’s Executor’s Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Bank A/c |
50,000 |
Sunil’s Capital A/c |
1,86,600 |
Balance c/d |
1,36,600 |
|
|
|
1,86,600 |
|
1,86,600 |
|
|
|
|
Working Notes:
WN 1 Calculation of Sunil’s Share of Profit
Profit for 2015-16 = Rs 1,80,000
WN 2 Calculation of Goodwill
Goodwill = Average Profit × Number of Year’s Purchase
∴ Goodwill = Average Profit × Number of Years’ Purchase
= 70,000 × 3 = Rs 2,10,000
WN 3 Adjustment of Goodwill
Old Ratio = 1 : 1 : 1
Sunil died.
∴ New Ratio = 1 : 1 and
Gaining Ratio = 1 : 1
Sunil’s Share in Goodwill =
This share of goodwill is to be distributed between Akhil and Nikhil in their gaining ratio (i.e. 1 : 1).
WN 4 Calculation of Interest on Sunil’s Capital
Sunil’s Capital Balance = Rs 80,000
∴ Interest on Capital (for 4 months)
Answer:
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Provision for doubtful debts A/c | 1,500 | Building A/c | 15,000 | |||
Stock A/c | 2,000 | |||||
Workmen Compensation Fund | 5,000 | |||||
Profit transferred to: | ||||||
A’s Capital A/c
|
3,250 | |||||
B’s Capital A/c
|
2,167 | |||||
C’s Capital A/c
|
1,083 | 6,500 | ||||
15,000 | 15,000 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | A | B | C | Particulars | A | B | C | ||
A’s Capital A/c | 8,000 | 4,000 | Balance b/d | 1,50,000 | 1,50,000 | 1,50,000 | |||
A’s Executor A/c | 1,67,375 | Profit & Loss Suspense A/c | 1,375 | ||||||
Balance c/d | 1,44,167 | 1,47,083 | Revaluation A/c | 3,250 | 2,167 | 1,083 | |||
B’s Capital A/c | 8,000 | ||||||||
C’s Capital A/c | 4,000 | ||||||||
Interest on Capital A/c | 750 | ||||||||
1,67,375 | 1,52,167 | 1,51,083 | 1,67,375 | 1,52,167 | 1,51,083 | ||||
Balance Sheet
as on July 01, 2016 after A’s death
|
|||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
A’s Executor | 1,67,375 | Machinery | 25,000 | ||
Capital A/cs: | Building | 85,000 | |||
B
|
1,44,167 | Profit and Loss Suspense A/c (1,375 + 750) | 2,125 | ||
C
|
1,47,083 | 2,91,250 | Debtors | 15,000 | |
Creditors | 17,000 |
Less: Provision for Doubtful Debts
|
1,500 | 13,500 | |
Workmen Compensation Fund | 5,000 | Stock | 30,000 | ||
Bank | 3,25,000 | ||||
4,80,625 | 4,80,625 | ||||
Working Notes:
WN 1: Interest on Capital =
WN 2: Profit to A for 1st April 2016 to 1st July 2016 =
WN 3: Calculation of Goodwill
Total Profit = 11,000 + 15,000 + 10,000 =Rs 36,000
Goodwill = 12,000 × 2 = Rs 24,000
A’s share =
Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio which is 2 : 1.
Page No 4.130:
Question 62:
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Provision for doubtful debts A/c | 1,500 | Building A/c | 15,000 | |||
Stock A/c | 2,000 | |||||
Workmen Compensation Fund | 5,000 | |||||
Profit transferred to: | ||||||
A’s Capital A/c
|
3,250 | |||||
B’s Capital A/c
|
2,167 | |||||
C’s Capital A/c
|
1,083 | 6,500 | ||||
15,000 | 15,000 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | A | B | C | Particulars | A | B | C | ||
A’s Capital A/c | 8,000 | 4,000 | Balance b/d | 1,50,000 | 1,50,000 | 1,50,000 | |||
A’s Executor A/c | 1,67,375 | Profit & Loss Suspense A/c | 1,375 | ||||||
Balance c/d | 1,44,167 | 1,47,083 | Revaluation A/c | 3,250 | 2,167 | 1,083 | |||
B’s Capital A/c | 8,000 | ||||||||
C’s Capital A/c | 4,000 | ||||||||
Interest on Capital A/c | 750 | ||||||||
1,67,375 | 1,52,167 | 1,51,083 | 1,67,375 | 1,52,167 | 1,51,083 | ||||
Balance Sheet
as on July 01, 2016 after A’s death
|
|||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
A’s Executor | 1,67,375 | Machinery | 25,000 | ||
Capital A/cs: | Building | 85,000 | |||
B
|
1,44,167 | Profit and Loss Suspense A/c (1,375 + 750) | 2,125 | ||
C
|
1,47,083 | 2,91,250 | Debtors | 15,000 | |
Creditors | 17,000 |
Less: Provision for Doubtful Debts
|
1,500 | 13,500 | |
Workmen Compensation Fund | 5,000 | Stock | 30,000 | ||
Bank | 3,25,000 | ||||
4,80,625 | 4,80,625 | ||||
Working Notes:
WN 1: Interest on Capital =
WN 2: Profit to A for 1st April 2016 to 1st July 2016 =
WN 3: Calculation of Goodwill
Total Profit = 11,000 + 15,000 + 10,000 =Rs 36,000
Goodwill = 12,000 × 2 = Rs 24,000
A’s share =
Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio which is 2 : 1.
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Revaluation A/c |
Dr. |
|
10,000 |
|
To Machinery A/c |
|
|
10,000 |
|
(Decrease in value of Machinery transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Patents A/c |
Dr. |
|
10,000 |
|
Leasehold A/c |
Dr. |
|
25,000 |
|
To Revaluation A/c |
|
|
35,000 |
|
(Increase in value Patents and Leasehold transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
25,000 |
|
To R’s Capital A/c |
|
|
12,500 |
|
To S’s Capital A/c |
|
|
7,500 |
|
To T’s Capital A/c |
|
|
5,000 |
|
(Revaluation profit distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
R’ Capital A/c |
Dr. |
|
12,500 |
|
S’s Capital A/c |
Dr. |
|
7,500 |
|
T’s Capital A/c |
Dr. |
|
5,000 |
|
To Goodwill A/c |
|
|
25,000 |
|
(Goodwill written off among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
R’s Capital A/c |
Dr. |
|
21,875 |
|
S’s Capital A/c |
Dr. |
|
13,125 |
|
To T’s Capital A/c |
|
|
35,000 |
|
(T’s share of goodwill adjusted) |
|
|
|
|
|
|
|
|
|
Profit and Loss Suspense A/c |
Dr. |
|
5,000 |
|
To T’s Capital A/c |
|
|
5,000 |
|
(T’s share of profit transferred to his capital account) |
|
|
|
|
|
|
|
|
|
Workmen’s Compensation Reserve A/c |
Dr. |
|
30,000 |
|
To R’s Capital A/c |
|
|
15,000 |
|
To S’s Capital A/c |
|
|
9,000 |
|
To T’s Capital A/c |
|
|
6,000 |
|
(Workmen’s Compensation Reserve distributed among partners in their old ratio ) |
|
|
|
|
|
|
|
|
|
T’s Capital A/c |
Dr. |
|
1,21,000 |
|
To T’s Executors A/c |
|
|
1,21,000 |
|
(Amount due to T after all adjustments transferred to his Executor’s Account) |
|
|
|
|
|
|
|
|
|
T’s Executor’s A/c |
Dr. |
|
21,000 |
|
To Bank A/c |
|
|
21,000 |
|
(Amount paid to T’s Executor) |
|
|
|
|
|
|
|
|
T’s Executor’s Account |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
2016 |
|
|
2016 |
|
|
Aug. 01 |
Cash A/c |
21,000 |
Aug. 01 |
T’s Capital A/c |
1,21,000 |
2017 | 2017 | ||||
Feb. 01 |
Cash A/c (25,000 + 5,000) |
30,000 |
Feb. 01 |
Interest (1,00,000 ×10% for 6 months) |
5,000 |
March 31 |
Balance c/d |
76,250 |
March 31 |
Interest (75,000 ×10% for 2 months) |
1,250 |
|
|
1,27,250 |
|
|
1,27,250 |
2017 |
|
|
2017 |
|
|
August 01 |
Cash A/c (25,000 + 1,250 + 2,500) |
28,750 |
April 01 |
Balance b/d |
76,250 |
2018 |
|
|
August 01 |
Interest (75,000 × 10% for 4 months) |
2,500 |
Feb. 01 | Cash A/c (25,000 + 2,500) | 27,500 | 2018 | ||
March 31 |
Balance c/d |
25,417 |
Feb. 01 |
Interest (50,000 × 10% for 6 months) |
2,500 |
|
|
|
March 31 |
Interest (25,000 × 10% for 2 months) |
417 |
|
|
81,667 |
|
|
81,667 |
2018 |
|
|
2018 |
|
|
August 01 |
Cash A/c (25,000 + 417 + 833) |
26,250 |
April 01 |
Balance b/d |
25,417 |
|
|
|
August 01 |
Interest (25,000 × 10% for 4 months) |
833 |
|
|
26,250 |
|
|
26,250 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Goodwill
Goodwill = Average Profit × Number of Year’s Purchase
∴ Goodwill = Average Profit × Number of Years’ Purchase
= 70,000 × 2.5 = Rs 1,75,000
WN 2 Adjustment of Goodwill
Old Ratio (R, S and T) = 5 : 3 : 2
T died.
∴ New Ratio (R and S) = 5 : 3 and
Gaining Ratio = 5 : 3
T’s Share in Goodwill =
This share of goodwill is to be distributed between R and S in their gaining ratio (i.e. 5 : 3).
WN 3 Calculation of T’s Share of Profit
Profit for 2016-17 = Rs 75,000
WN 4
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Machinery |
10,000 |
Patents |
10,000 |
|
Profit transferred to: |
|
Leasehold |
25,000 |
|
R’s Capital A/c |
12,500 |
|
|
|
S’s Capital A/c |
7,500 |
|
|
|
T’s Capital A/c |
5,000 |
25,000 |
|
|
|
35,000 |
|
35,000 |
|
|
|
|
|
WN 5
T’s Capital Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Goodwill |
5,000 |
Balance b/d |
75,000 |
T’s Executor’s A/c |
1,21,000 |
Workmen’s Compensation Reserve |
6,000 |
|
|
Profit and Loss Suspense A/c |
5,000 |
|
|
R’s Capital A/c |
21,875 |
|
|
S’s Capital A/c |
13,125 |
|
|
Revaluation A/c (Profit) |
5,000 |
|
1,26,000 |
|
1,26,000 |
|
|
|
|
Page No 4.131:
Question 63:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Revaluation A/c |
Dr. |
|
10,000 |
|
To Machinery A/c |
|
|
10,000 |
|
(Decrease in value of Machinery transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Patents A/c |
Dr. |
|
10,000 |
|
Leasehold A/c |
Dr. |
|
25,000 |
|
To Revaluation A/c |
|
|
35,000 |
|
(Increase in value Patents and Leasehold transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
25,000 |
|
To R’s Capital A/c |
|
|
12,500 |
|
To S’s Capital A/c |
|
|
7,500 |
|
To T’s Capital A/c |
|
|
5,000 |
|
(Revaluation profit distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
R’ Capital A/c |
Dr. |
|
12,500 |
|
S’s Capital A/c |
Dr. |
|
7,500 |
|
T’s Capital A/c |
Dr. |
|
5,000 |
|
To Goodwill A/c |
|
|
25,000 |
|
(Goodwill written off among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
R’s Capital A/c |
Dr. |
|
21,875 |
|
S’s Capital A/c |
Dr. |
|
13,125 |
|
To T’s Capital A/c |
|
|
35,000 |
|
(T’s share of goodwill adjusted) |
|
|
|
|
|
|
|
|
|
Profit and Loss Suspense A/c |
Dr. |
|
5,000 |
|
To T’s Capital A/c |
|
|
5,000 |
|
(T’s share of profit transferred to his capital account) |
|
|
|
|
|
|
|
|
|
Workmen’s Compensation Reserve A/c |
Dr. |
|
30,000 |
|
To R’s Capital A/c |
|
|
15,000 |
|
To S’s Capital A/c |
|
|
9,000 |
|
To T’s Capital A/c |
|
|
6,000 |
|
(Workmen’s Compensation Reserve distributed among partners in their old ratio ) |
|
|
|
|
|
|
|
|
|
T’s Capital A/c |
Dr. |
|
1,21,000 |
|
To T’s Executors A/c |
|
|
1,21,000 |
|
(Amount due to T after all adjustments transferred to his Executor’s Account) |
|
|
|
|
|
|
|
|
|
T’s Executor’s A/c |
Dr. |
|
21,000 |
|
To Bank A/c |
|
|
21,000 |
|
(Amount paid to T’s Executor) |
|
|
|
|
|
|
|
|
T’s Executor’s Account |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
2016 |
|
|
2016 |
|
|
Aug. 01 |
Cash A/c |
21,000 |
Aug. 01 |
T’s Capital A/c |
1,21,000 |
2017 | 2017 | ||||
Feb. 01 |
Cash A/c (25,000 + 5,000) |
30,000 |
Feb. 01 |
Interest (1,00,000 ×10% for 6 months) |
5,000 |
March 31 |
Balance c/d |
76,250 |
March 31 |
Interest (75,000 ×10% for 2 months) |
1,250 |
|
|
1,27,250 |
|
|
1,27,250 |
2017 |
|
|
2017 |
|
|
August 01 |
Cash A/c (25,000 + 1,250 + 2,500) |
28,750 |
April 01 |
Balance b/d |
76,250 |
2018 |
|
|
August 01 |
Interest (75,000 × 10% for 4 months) |
2,500 |
Feb. 01 | Cash A/c (25,000 + 2,500) | 27,500 | 2018 | ||
March 31 |
Balance c/d |
25,417 |
Feb. 01 |
Interest (50,000 × 10% for 6 months) |
2,500 |
|
|
|
March 31 |
Interest (25,000 × 10% for 2 months) |
417 |
|
|
81,667 |
|
|
81,667 |
2018 |
|
|
2018 |
|
|
August 01 |
Cash A/c (25,000 + 417 + 833) |
26,250 |
April 01 |
Balance b/d |
25,417 |
|
|
|
August 01 |
Interest (25,000 × 10% for 4 months) |
833 |
|
|
26,250 |
|
|
26,250 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Goodwill
Goodwill = Average Profit × Number of Year’s Purchase
∴ Goodwill = Average Profit × Number of Years’ Purchase
= 70,000 × 2.5 = Rs 1,75,000
WN 2 Adjustment of Goodwill
Old Ratio (R, S and T) = 5 : 3 : 2
T died.
∴ New Ratio (R and S) = 5 : 3 and
Gaining Ratio = 5 : 3
T’s Share in Goodwill =
This share of goodwill is to be distributed between R and S in their gaining ratio (i.e. 5 : 3).
WN 3 Calculation of T’s Share of Profit
Profit for 2016-17 = Rs 75,000
WN 4
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Machinery |
10,000 |
Patents |
10,000 |
|
Profit transferred to: |
|
Leasehold |
25,000 |
|
R’s Capital A/c |
12,500 |
|
|
|
S’s Capital A/c |
7,500 |
|
|
|
T’s Capital A/c |
5,000 |
25,000 |
|
|
|
35,000 |
|
35,000 |
|
|
|
|
|
WN 5
T’s Capital Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Goodwill |
5,000 |
Balance b/d |
75,000 |
T’s Executor’s A/c |
1,21,000 |
Workmen’s Compensation Reserve |
6,000 |
|
|
Profit and Loss Suspense A/c |
5,000 |
|
|
R’s Capital A/c |
21,875 |
|
|
S’s Capital A/c |
13,125 |
|
|
Revaluation A/c (Profit) |
5,000 |
|
1,26,000 |
|
1,26,000 |
|
|
|
|
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Workmen’s Compensation Reserve |
Dr. |
|
6,000 |
|
To X’s Capital A/c |
|
|
3,000 |
|
To Y’s Capital A/c |
|
|
2,000 |
|
To Z’s Capital A/c |
|
|
1,000 |
|
(Workmen’s Compesation Reserve distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
6,000 |
|
To X’s Capital A/c |
|
|
3,000 |
|
To Y’s Capital A/c |
|
|
2,000 |
|
To Z’s Capital A/c |
|
|
1,000 |
|
(General Reserve distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
3,000 |
|
Y’s Capital A/c |
Dr. |
|
2,000 |
|
Z’s Capital A/c |
Dr. |
|
1,000 |
|
To Advertisement Suspense A/c |
|
|
6,000 |
|
(Advertisement suspense written off among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
4,500 |
|
Y’s Capital A/c |
Dr. |
|
3,000 |
|
To Z’s Capital A/c |
|
|
7,500 |
|
(Z’s share of goodwill adjusted ) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
3,600 |
|
To Sundry debtors A/c |
Dr. |
|
|
1,000 |
To Furniture A/c |
|
|
500 |
|
To Plant and Machinery A/c |
|
|
1,500 |
|
To Bills Receivable A/c |
|
|
600 |
|
(Decrease in value of Assets transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Stock A/c |
Dr. |
|
1,000 |
|
Building A/c |
Dr. |
|
5,000 |
|
To Revaluation A/c |
|
|
6,000 |
|
(Increase in value of Assets transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
2,400 |
|
To X’ Capital A/c |
|
|
1,200 |
|
To Y’s Capital A/c |
|
|
800 |
|
To Z’s Capital A/c |
|
|
400 |
|
(Revaluation profit distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
Profit and Loss Suspense A/c |
Dr. |
|
1,333 |
|
To Z’s Capital A/c |
|
|
1,333 |
|
(Z’s share of profit transferred his capital account) |
|
|
|
|
|
|
|
|
|
Z’s Capital A/c |
Dr. |
|
22,233 |
|
To Z’s Executor’s A/c |
|
|
22,233 |
|
(Amount due to Z transferred to his Executor’s Account) |
|
|
|
|
|
|
|
|
|
Z’s Executor’s A/c |
Dr. |
|
12,333 |
|
To Bank A/c |
|
|
12,333 |
|
(Amount paid to Z’s Executor) |
|
|
|
|
|
|
|
|
Z’s Executor’s Account |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
2015 |
|
|
2015 |
|
|
April 30 |
Bank A/c |
12,233 |
April 30 |
Z’s Capital A/c |
22,233 |
Dec. 31 |
Balance c/d |
10,667 |
Dec. 31 |
Interest (10,000 × 10% for 8 months) |
667 |
|
|
22,900 |
|
|
22,900 |
2016 |
|
|
2016 |
|
|
April 30 |
Bank A/c (5,000 + 667 + 333) |
6,000 |
Jan. 01 |
Balance b/d |
10,667 |
|
|
|
April 30 |
Interest (10,000 × 10% for 4 months ) |
333 |
|
Balance c/d |
5,333 |
Dec. 31 |
Interest (5,000 × 10% for 8 months) |
333 |
|
|
11,333 |
|
|
11,333 |
2017 |
|
|
2017 |
|
|
April 30 |
Bank A/c (5,000 + 333 + 167) |
5,500 |
April 01 |
Balance b/d |
5,333 |
|
|
|
April 30 |
Interest (5,000 × 10% for 4months) |
167 |
|
|
5,500 |
|
|
5,500 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Goodwill
Goodwill = Average Profit × Number of Year’s Purchase
∴ Goodwill = Average Profit × Number of Years’ Purchase
= 15,000 × 3 = Rs 45,000
WN 2 Adjustment of Goodwill
Old Ratio = 3 : 2 : 1
Z died.
∴ New Ratio (X and Y) = 3 : 1 and
Gaining Ratio = 3 : 2
Z’s Share in Goodwill =
This share of goodwill is to be distributed between X and Y in their gaining ratio (i.e. 3 : 1).
WN 3 Calculation Z’s Share of Profit
Profit for Previous Year = Rs 24,000
∴ Z’s Profit Share
WN 4
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Sundry Debtors |
1,000 |
Stock |
1,000 |
|
Furniture |
500 |
Building |
5,000 |
|
Plant and Machinery |
1,500 |
|
|
|
Bills Receivable |
600 |
|
|
|
Profit transferred to: |
|
|
|
|
X’s Capital A/c |
1,200 |
|
|
|
Y’s Capital A/c |
800 |
|
|
|
Z’s Capital A/c |
400 |
2,400 |
|
|
|
6,000 |
|
6,000 |
|
|
|
|
|
Page No 4.131:
Question 64:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Workmen’s Compensation Reserve |
Dr. |
|
6,000 |
|
To X’s Capital A/c |
|
|
3,000 |
|
To Y’s Capital A/c |
|
|
2,000 |
|
To Z’s Capital A/c |
|
|
1,000 |
|
(Workmen’s Compesation Reserve distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
6,000 |
|
To X’s Capital A/c |
|
|
3,000 |
|
To Y’s Capital A/c |
|
|
2,000 |
|
To Z’s Capital A/c |
|
|
1,000 |
|
(General Reserve distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
3,000 |
|
Y’s Capital A/c |
Dr. |
|
2,000 |
|
Z’s Capital A/c |
Dr. |
|
1,000 |
|
To Advertisement Suspense A/c |
|
|
6,000 |
|
(Advertisement suspense written off among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
4,500 |
|
Y’s Capital A/c |
Dr. |
|
3,000 |
|
To Z’s Capital A/c |
|
|
7,500 |
|
(Z’s share of goodwill adjusted ) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
3,600 |
|
To Sundry debtors A/c |
Dr. |
|
|
1,000 |
To Furniture A/c |
|
|
500 |
|
To Plant and Machinery A/c |
|
|
1,500 |
|
To Bills Receivable A/c |
|
|
600 |
|
(Decrease in value of Assets transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Stock A/c |
Dr. |
|
1,000 |
|
Building A/c |
Dr. |
|
5,000 |
|
To Revaluation A/c |
|
|
6,000 |
|
(Increase in value of Assets transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
2,400 |
|
To X’ Capital A/c |
|
|
1,200 |
|
To Y’s Capital A/c |
|
|
800 |
|
To Z’s Capital A/c |
|
|
400 |
|
(Revaluation profit distributed among partners in their old ratio) |
|
|
|
|
|
|
|
|
|
Profit and Loss Suspense A/c |
Dr. |
|
1,333 |
|
To Z’s Capital A/c |
|
|
1,333 |
|
(Z’s share of profit transferred his capital account) |
|
|
|
|
|
|
|
|
|
Z’s Capital A/c |
Dr. |
|
22,233 |
|
To Z’s Executor’s A/c |
|
|
22,233 |
|
(Amount due to Z transferred to his Executor’s Account) |
|
|
|
|
|
|
|
|
|
Z’s Executor’s A/c |
Dr. |
|
12,333 |
|
To Bank A/c |
|
|
12,333 |
|
(Amount paid to Z’s Executor) |
|
|
|
|
|
|
|
|
Z’s Executor’s Account |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
2015 |
|
|
2015 |
|
|
April 30 |
Bank A/c |
12,233 |
April 30 |
Z’s Capital A/c |
22,233 |
Dec. 31 |
Balance c/d |
10,667 |
Dec. 31 |
Interest (10,000 × 10% for 8 months) |
667 |
|
|
22,900 |
|
|
22,900 |
2016 |
|
|
2016 |
|
|
April 30 |
Bank A/c (5,000 + 667 + 333) |
6,000 |
Jan. 01 |
Balance b/d |
10,667 |
|
|
|
April 30 |
Interest (10,000 × 10% for 4 months ) |
333 |
|
Balance c/d |
5,333 |
Dec. 31 |
Interest (5,000 × 10% for 8 months) |
333 |
|
|
11,333 |
|
|
11,333 |
2017 |
|
|
2017 |
|
|
April 30 |
Bank A/c (5,000 + 333 + 167) |
5,500 |
April 01 |
Balance b/d |
5,333 |
|
|
|
April 30 |
Interest (5,000 × 10% for 4months) |
167 |
|
|
5,500 |
|
|
5,500 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Goodwill
Goodwill = Average Profit × Number of Year’s Purchase
∴ Goodwill = Average Profit × Number of Years’ Purchase
= 15,000 × 3 = Rs 45,000
WN 2 Adjustment of Goodwill
Old Ratio = 3 : 2 : 1
Z died.
∴ New Ratio (X and Y) = 3 : 1 and
Gaining Ratio = 3 : 2
Z’s Share in Goodwill =
This share of goodwill is to be distributed between X and Y in their gaining ratio (i.e. 3 : 1).
WN 3 Calculation Z’s Share of Profit
Profit for Previous Year = Rs 24,000
∴ Z’s Profit Share
WN 4
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Sundry Debtors |
1,000 |
Stock |
1,000 |
|
Furniture |
500 |
Building |
5,000 |
|
Plant and Machinery |
1,500 |
|
|
|
Bills Receivable |
600 |
|
|
|
Profit transferred to: |
|
|
|
|
X’s Capital A/c |
1,200 |
|
|
|
Y’s Capital A/c |
800 |
|
|
|
Z’s Capital A/c |
400 |
2,400 |
|
|
|
6,000 |
|
6,000 |
|
|
|
|
|
Answer:
Black’s Executor’s Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Black’s Executor’s Loan A/c | 1,28,000 | Balance b/d | 60,000 | ||
Reserves A/c (WN1) | 12,000 | ||||
Profit and Loss Suspense A/c (WN 2) | 5,600 | ||||
Brown’s Capital A/c (WN 3) | 50,400 | ||||
1,28,000 | 1,28,000 | ||||
Working Notes:
Profit Sharing Ratio between Brown and Black is 3 : 2
WN 1: Calculation of Share of Reserve
WN 2: Calculation of Share of Profits
Total Profit = 42,000 + 39,000 + 45,000 = Rs 1,26,000
Black’s Share =
WN 3: Calculation of Share of Goodwill
Average Profit = Rs 42,000
Goodwill = 42,000 × 3 = Rs 1,26,000
Black’s Share =
Page No 4.132:
Question 65:
Black’s Executor’s Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Black’s Executor’s Loan A/c | 1,28,000 | Balance b/d | 60,000 | ||
Reserves A/c (WN1) | 12,000 | ||||
Profit and Loss Suspense A/c (WN 2) | 5,600 | ||||
Brown’s Capital A/c (WN 3) | 50,400 | ||||
1,28,000 | 1,28,000 | ||||
Working Notes:
Profit Sharing Ratio between Brown and Black is 3 : 2
WN 1: Calculation of Share of Reserve
WN 2: Calculation of Share of Profits
Total Profit = 42,000 + 39,000 + 45,000 = Rs 1,26,000
Black’s Share =
WN 3: Calculation of Share of Goodwill
Average Profit = Rs 42,000
Goodwill = 42,000 × 3 = Rs 1,26,000
Black’s Share =
Answer:
Y’s Capital Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Profit & Loss A/c |
64,000 |
Balance b/d |
3,00,000 |
||
Profit & Loss Suspense |
16,000 |
X’s Capital A/c |
18,000 |
||
Y’s Executors A/c |
2,95,000 |
Z ’s Capital A/c |
9,000 |
||
|
|
X’s Capital A/c |
32,000 |
||
|
|
Z ’s Capital A/c |
16,000 |
||
|
|
|
|
||
|
3,75,000 |
|
3,75,000 |
||
|
|
|
|
||
Working Notes:
WN1: Calculation of Adjusted Balance:
WN2: Calculation of Profit & Loss Suspense Balance:
WN3: Calculation of Share of Goodwill:
Page No 4.132:
Question 66:
Y’s Capital Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Profit & Loss A/c |
64,000 |
Balance b/d |
3,00,000 |
||
Profit & Loss Suspense |
16,000 |
X’s Capital A/c |
18,000 |
||
Y’s Executors A/c |
2,95,000 |
Z ’s Capital A/c |
9,000 |
||
|
|
X’s Capital A/c |
32,000 |
||
|
|
Z ’s Capital A/c |
16,000 |
||
|
|
|
|
||
|
3,75,000 |
|
3,75,000 |
||
|
|
|
|
||
Working Notes:
WN1: Calculation of Adjusted Balance:
WN2: Calculation of Profit & Loss Suspense Balance:
WN3: Calculation of Share of Goodwill:
Answer:
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Stock A/c | 1,500 | Land and Building A/c | 25,000 | |||
Provision for Doubtful Debts A/c | 2,000 | |||||
Profit transferred to: | ||||||
X’s Capital A/c
|
8,500 | |||||
Y’s Capital A/c
|
8,500 | |||||
Z’s Capital A/c
|
8,500 | 25,500 | ||||
27,000 | 27,000 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Z’s Capital A/c | 4,375 | 4,375 | Balance b/d | 75,000 | 50,000 | 50,000 | |||
Goodwill A/c | 15,750 | 15,750 | 15,750 | Profit & Loss Suspense A/c | 1,875 | ||||
Z’s Executor A/c | 56,925 | Revaluation A/c | 8,500 | 8,500 | 8,500 | ||||
Balance c/d | 66,925 | 41,925 | X’s Capital A/c | 4,375 | |||||
Y’s Capital A/c | 4,375 | ||||||||
Investment Fluctuation Reserve | 550 | 550 | 550 | ||||||
Contingency Reserve | 3,000 | 3,000 | 3,000 | ||||||
87,050 | 62,050 | 72,675 | 87,050 | 62,050 | 72,675 | ||||
Balance Sheet
as on April 01, 2010 after Z’s death
|
||||
Liabilities | Amount Rs | Assets | Amount Rs | |
Z’s Executor | 56,925 | Cash | 2,500 | |
Capital A/cs: | Bank | 10,000 | ||
X
|
66,925 | Debtors | 25,000 | |
Y
|
41,925 | 1,08,850 | Stock | 23,500 |
Creditors | 33,250 | Land and Building | 1,25,000 | |
Investment Fluctuation Reserve | 1,350 | Investments (at Cost) | 12,500 | |
Profit and Loss Suspense A/c | 1,875 | |||
2,00,375 | 2,00,375 | |||
Working Notes:
1. Investment Fluctuation Reserve is required only upto Rs 1,350, the balance of Rs 1,650 is credited to Partner’s Capital A/c in their old profit sharing ratio.
2. Goodwill already appearing in the books of accounts is to be written off in old ratio
3. Calculation of Goodwill:
Total Profit = 28,750 + 35,000 + 22,500 + 20,000 + 25,000 = Rs 1,31,250
Goodwill = 26,250 × 1 = Rs 26,250
Z’s share =
Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio which is 1 : 1.
4. Profit share of Z
Average Profit for 3 years =
Total Profit = 22,500 + 20,000 + 25,000 = Rs 67,500
Z’s Share =
Page No 4.133:
Question 67:
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Stock A/c | 1,500 | Land and Building A/c | 25,000 | |||
Provision for Doubtful Debts A/c | 2,000 | |||||
Profit transferred to: | ||||||
X’s Capital A/c
|
8,500 | |||||
Y’s Capital A/c
|
8,500 | |||||
Z’s Capital A/c
|
8,500 | 25,500 | ||||
27,000 | 27,000 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Z’s Capital A/c | 4,375 | 4,375 | Balance b/d | 75,000 | 50,000 | 50,000 | |||
Goodwill A/c | 15,750 | 15,750 | 15,750 | Profit & Loss Suspense A/c | 1,875 | ||||
Z’s Executor A/c | 56,925 | Revaluation A/c | 8,500 | 8,500 | 8,500 | ||||
Balance c/d | 66,925 | 41,925 | X’s Capital A/c | 4,375 | |||||
Y’s Capital A/c | 4,375 | ||||||||
Investment Fluctuation Reserve | 550 | 550 | 550 | ||||||
Contingency Reserve | 3,000 | 3,000 | 3,000 | ||||||
87,050 | 62,050 | 72,675 | 87,050 | 62,050 | 72,675 | ||||
Balance Sheet
as on April 01, 2010 after Z’s death
|
||||
Liabilities | Amount Rs | Assets | Amount Rs | |
Z’s Executor | 56,925 | Cash | 2,500 | |
Capital A/cs: | Bank | 10,000 | ||
X
|
66,925 | Debtors | 25,000 | |
Y
|
41,925 | 1,08,850 | Stock | 23,500 |
Creditors | 33,250 | Land and Building | 1,25,000 | |
Investment Fluctuation Reserve | 1,350 | Investments (at Cost) | 12,500 | |
Profit and Loss Suspense A/c | 1,875 | |||
2,00,375 | 2,00,375 | |||
Working Notes:
1. Investment Fluctuation Reserve is required only upto Rs 1,350, the balance of Rs 1,650 is credited to Partner’s Capital A/c in their old profit sharing ratio.
2. Goodwill already appearing in the books of accounts is to be written off in old ratio
3. Calculation of Goodwill:
Total Profit = 28,750 + 35,000 + 22,500 + 20,000 + 25,000 = Rs 1,31,250
Goodwill = 26,250 × 1 = Rs 26,250
Z’s share =
Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio which is 1 : 1.
4. Profit share of Z
Average Profit for 3 years =
Total Profit = 22,500 + 20,000 + 25,000 = Rs 67,500
Z’s Share =
Answer:
Bharati’s Capital Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Bharati’s Executor’s A/c | 26,300 | Balance b/d | 12,000 | ||
Interest on Capital A/c | 300 | ||||
General Reserve A/c | 4,000 | ||||
Profit and Loss Suspense A/c | 4,000 | ||||
Arti’s Capital A/c | 4,500 | ||||
Seema’s Capital A/c | 1,500 | ||||
26,300 | 26,300 | ||||
Working Notes:
WN 1: Calculation of Interest on Capital
WN 2: Calculation of Profit share
10% of Sales =
Bharati’s Share =
WN 3: Calculation of Goodwill
Average profit of 3 years × 2 years of purchase
Total Profit = 8,200 + 9,000 + 9,800 = Rs 27,000
Goodwill = 9,000 × 2 = Rs 18,000
Bharti’s Share =
Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio which is 3 : 1.
Note: The answer given in the book is Rs 26,000. However, as per the solution provided, the actual amount payable to Bharati's Executor is Rs 26,300.
Page No 4.133:
Question 68:
Bharati’s Capital Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Bharati’s Executor’s A/c | 26,300 | Balance b/d | 12,000 | ||
Interest on Capital A/c | 300 | ||||
General Reserve A/c | 4,000 | ||||
Profit and Loss Suspense A/c | 4,000 | ||||
Arti’s Capital A/c | 4,500 | ||||
Seema’s Capital A/c | 1,500 | ||||
26,300 | 26,300 | ||||
Working Notes:
WN 1: Calculation of Interest on Capital
WN 2: Calculation of Profit share
10% of Sales =
Bharati’s Share =
WN 3: Calculation of Goodwill
Average profit of 3 years × 2 years of purchase
Total Profit = 8,200 + 9,000 + 9,800 = Rs 27,000
Goodwill = 9,000 × 2 = Rs 18,000
Bharti’s Share =
Since no information about new ratio is given, it is assumed that partner’s will gain in their old ratio which is 3 : 1.
Note: The answer given in the book is Rs 26,000. However, as per the solution provided, the actual amount payable to Bharati's Executor is Rs 26,300.
Answer:
Books of | ||||||
Journal | ||||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
Building A/c | Dr. | 5,000 | ||||
Stock A/c | Dr. | 1,000 | ||||
To Revaluation A/c
|
6,000 | |||||
(Value of assets has increased) | ||||||
Revaluation A/c | Dr. | 3,600 | ||||
To Debtors A/c
|
1,000 | |||||
To Furniture A/c
|
500 | |||||
To Plant and Machinery A/c
|
1,500 | |||||
To Bills Receivable
|
600 | |||||
(Value of assets has decreased) | ||||||
Revaluation A/c | Dr. | 2,400 | ||||
To P’s Capital A/c
|
1,200 | |||||
To Q’s Capital A/c
|
800 | |||||
To R’s Capital A/c
|
400 | |||||
(Profit on Revaluation credited to Partner’s Capital A/c) | ||||||
Profit and Loss Suspense A/c | Dr. | 1,333 | ||||
To R’s Executor A/c
|
1,333 | |||||
(R’s share of Profit credited to his account) | ||||||
P’s Capital A/c | Dr. | 4,500 | ||||
Q’s Capital A/c | Dr. | 3,000 | ||||
To R’s Capital A/c
|
7,500 | |||||
(R’s share of goodwill credited to his account and debited to P and Q in their gaining ratio.) | ||||||
Reserve | Dr. | 6,000 | ||||
To P’s Capital A/c
|
3,000 | |||||
To Q’s Capital A/c
|
2,000 | |||||
To R’s Capital A/c
|
1,000 | |||||
(Reserve credited to Partner’s Capital Account in their old ratio.) |
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
R’s Capital A/c | 4,500 | 3,000 | Balance b/d | 22,750 | 15,250 | 12,000 | |||
R’s Executor A/c | 22,233 | Reserve A/c | 3,000 | 2,000 | 1,000 | ||||
Balance c/d | 22,450 | 15,050 | Profit & Loss Suspense A/c | 1,333 | |||||
Revaluation A/c | 1,200 | 800 | 400 | ||||||
P’s Capital A/c | 4,500 | ||||||||
Q’s Capital A/c | 3,000 | ||||||||
26,950 | 18,050 | 22,233 | 26,950 | 18,050 | 22,233 | ||||
R’s Executor’s Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Bank A/c | 12,900 | Balance b/d | 22,233 | ||
R’s Executor’s Loan A/c | 9,333 | ||||
22,233 | 22,233 | ||||
Balance Sheet
as on July 31, 2015 after R’s death
|
||||
Liabilities | Amount Rs |
Assets | Amount Rs |
|
Cash at Bank | 5,800 | |||
Capital A/cs: | Bills Receivable (800 – 600) | 200 | ||
P
|
22,450 | Debtors | 15,000 | |
Q
|
15,050 | 37,500 | Stock | 10,000 |
Creditors | 5,000 | Building | 35,000 | |
Bills Payable | 2,000 | Furniture | 1,500 | |
Loans (7,100 + 12,900) | 20,000 | Plant and Machinery | 5,000 | |
R’s Executor’s A/c | 9,333 | Profit and Loss Suspense A/c | 1,333 | |
73,833 | 73,833 | |||
Working Notes:
1. Profit =
2. Total Profit = 24,000 + 16,000 + 20,000 + 10,000 + 5,000 = Rs 75,000
Goodwill = Average Profit of 5 Years’ × 3 Years’ of Purchase
Goodwill = 15,000 × 3 = Rs 45,000
R’s share =
Page No 4.134:
Question 69:
Books of | ||||||
Journal | ||||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
Building A/c | Dr. | 5,000 | ||||
Stock A/c | Dr. | 1,000 | ||||
To Revaluation A/c
|
6,000 | |||||
(Value of assets has increased) | ||||||
Revaluation A/c | Dr. | 3,600 | ||||
To Debtors A/c
|
1,000 | |||||
To Furniture A/c
|
500 | |||||
To Plant and Machinery A/c
|
1,500 | |||||
To Bills Receivable
|
600 | |||||
(Value of assets has decreased) | ||||||
Revaluation A/c | Dr. | 2,400 | ||||
To P’s Capital A/c
|
1,200 | |||||
To Q’s Capital A/c
|
800 | |||||
To R’s Capital A/c
|
400 | |||||
(Profit on Revaluation credited to Partner’s Capital A/c) | ||||||
Profit and Loss Suspense A/c | Dr. | 1,333 | ||||
To R’s Executor A/c
|
1,333 | |||||
(R’s share of Profit credited to his account) | ||||||
P’s Capital A/c | Dr. | 4,500 | ||||
Q’s Capital A/c | Dr. | 3,000 | ||||
To R’s Capital A/c
|
7,500 | |||||
(R’s share of goodwill credited to his account and debited to P and Q in their gaining ratio.) | ||||||
Reserve | Dr. | 6,000 | ||||
To P’s Capital A/c
|
3,000 | |||||
To Q’s Capital A/c
|
2,000 | |||||
To R’s Capital A/c
|
1,000 | |||||
(Reserve credited to Partner’s Capital Account in their old ratio.) |
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
R’s Capital A/c | 4,500 | 3,000 | Balance b/d | 22,750 | 15,250 | 12,000 | |||
R’s Executor A/c | 22,233 | Reserve A/c | 3,000 | 2,000 | 1,000 | ||||
Balance c/d | 22,450 | 15,050 | Profit & Loss Suspense A/c | 1,333 | |||||
Revaluation A/c | 1,200 | 800 | 400 | ||||||
P’s Capital A/c | 4,500 | ||||||||
Q’s Capital A/c | 3,000 | ||||||||
26,950 | 18,050 | 22,233 | 26,950 | 18,050 | 22,233 | ||||
R’s Executor’s Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Bank A/c | 12,900 | Balance b/d | 22,233 | ||
R’s Executor’s Loan A/c | 9,333 | ||||
22,233 | 22,233 | ||||
Balance Sheet
as on July 31, 2015 after R’s death
|
||||
Liabilities | Amount Rs |
Assets | Amount Rs |
|
Cash at Bank | 5,800 | |||
Capital A/cs: | Bills Receivable (800 – 600) | 200 | ||
P
|
22,450 | Debtors | 15,000 | |
Q
|
15,050 | 37,500 | Stock | 10,000 |
Creditors | 5,000 | Building | 35,000 | |
Bills Payable | 2,000 | Furniture | 1,500 | |
Loans (7,100 + 12,900) | 20,000 | Plant and Machinery | 5,000 | |
R’s Executor’s A/c | 9,333 | Profit and Loss Suspense A/c | 1,333 | |
73,833 | 73,833 | |||
Working Notes:
1. Profit =
2. Total Profit = 24,000 + 16,000 + 20,000 + 10,000 + 5,000 = Rs 75,000
Goodwill = Average Profit of 5 Years’ × 3 Years’ of Purchase
Goodwill = 15,000 × 3 = Rs 45,000
R’s share =
Answer:
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
R’s Capital A/c | 7,900 | 3,950 | Balance b/d | 15,000 | 10,000 | 10,000 | |||
Drawings A/c | 5,000 | Reserve Fund A/c | 10,000 | 5,000 | 5,000 | ||||
R’s Executor A/c | 22,936 | Profit & Loss Suspense A/c | 1,086 | ||||||
Balance c/d | 17,100 | 11,050 | P’s Capital A/c | 7,900 | |||||
Q’s Capital A/c | 3,950 | ||||||||
25,000 | 15,000 | 27,936 | 25,000 | 15,000 | 27,936 | ||||
R’s Executor’s Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Bank A/c | 22,936 | Balance b/d | 22,936 | ||
22,936 | 22,936 | ||||
Balance Sheet
as on July 01, 2016 after R’s death
|
||||
Liabilities | Amount Rs | Assets | Amount Rs | |
Creditors | 25,000 | Building | 26,000 | |
Capital A/cs: | Debtors | 15,000 | ||
P
|
17,100 | Bills Receivable | 6,000 | |
Q
|
11,050 | 28,150 | Stock | 12,000 |
Bank Overdraft | 6,936 | Profit and Loss Suspense A/c | 1,086 | |
60,086 | 60,086 | |||
Working Notes:
WN 1: Calculation of Share of Profit
Total Profit = 16,000 + 16,000 + 15,400 = Rs 47,400
Total Profits = 15,800 + 1,580 (10% of 15,800) = Rs 17,380
R’s Share =
WN 2: Calculation of Goodwill
Goodwill = Total Profits = Rs 47,400
R’s Share =
Bank A/c | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Balance b/d | 6,000 | R’s Executors’ A/c | 22,936 | ||
Investments | 15,000 | R’s Capital A/c | 5,000 | ||
Balance c/d | 6,936 | ||||
27,936 | 27,936 | ||||
Page No 4.134:
Question 70:
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
R’s Capital A/c | 7,900 | 3,950 | Balance b/d | 15,000 | 10,000 | 10,000 | |||
Drawings A/c | 5,000 | Reserve Fund A/c | 10,000 | 5,000 | 5,000 | ||||
R’s Executor A/c | 22,936 | Profit & Loss Suspense A/c | 1,086 | ||||||
Balance c/d | 17,100 | 11,050 | P’s Capital A/c | 7,900 | |||||
Q’s Capital A/c | 3,950 | ||||||||
25,000 | 15,000 | 27,936 | 25,000 | 15,000 | 27,936 | ||||
R’s Executor’s Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Bank A/c | 22,936 | Balance b/d | 22,936 | ||
22,936 | 22,936 | ||||
Balance Sheet
as on July 01, 2016 after R’s death
|
||||
Liabilities | Amount Rs | Assets | Amount Rs | |
Creditors | 25,000 | Building | 26,000 | |
Capital A/cs: | Debtors | 15,000 | ||
P
|
17,100 | Bills Receivable | 6,000 | |
Q
|
11,050 | 28,150 | Stock | 12,000 |
Bank Overdraft | 6,936 | Profit and Loss Suspense A/c | 1,086 | |
60,086 | 60,086 | |||
Working Notes:
WN 1: Calculation of Share of Profit
Total Profit = 16,000 + 16,000 + 15,400 = Rs 47,400
Total Profits = 15,800 + 1,580 (10% of 15,800) = Rs 17,380
R’s Share =
WN 2: Calculation of Goodwill
Goodwill = Total Profits = Rs 47,400
R’s Share =
Bank A/c | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Balance b/d | 6,000 | R’s Executors’ A/c | 22,936 | ||
Investments | 15,000 | R’s Capital A/c | 5,000 | ||
Balance c/d | 6,936 | ||||
27,936 | 27,936 | ||||
Answer:
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs |
Particulars | Amount Rs |
|||
Provision for Doubtful Debts A/c | 1,800 | Furniture A/c | 3,750 | |||
Machinery A/c | 12,000 | Stock A/c | 3,200 | |||
Advertisement Expenses A/c | 2,100 | |||||
Loss transferred to: | ||||||
X’s Capital A/c
|
2,375 | |||||
Y’s Capital A/c
|
1,583 | |||||
Z’s Capital A/c
|
792 | 4,750 | ||||
13,800 | 13,800 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Balance b/d (Current A/c) | 5,000 | Balance b/d (Capital A/c) | 1,50,000 | 1,00,000 | 50,000 | ||||
Revaluation A/c | 2,375 | 1,583 | 792 | Balance b/d (Current A/c) | 8,000 | 2,500 | |||
Z’s Capital A/c | 3,000 | 2,000 | Workmen Compensation Reserve A/c | 3,000 | 2,000 | 1,000 | |||
Z’s Executor A/c | 54,208 | X’s Capital A/c | 3,000 | ||||||
Balance c/d | 1,67,625 | 1,08,917 | Y’s Capital A/c | 2,000 | |||||
General Reserve A/c | 12,000 | 8,000 | 4,000 | ||||||
1,73,000 | 1,12,500 | 60,000 | 1,73,000 | 1,12,500 | 60,000 | ||||
Z’s Executor’s Account | |||||||
Dr. | Cr. | ||||||
Date | Particulars | Amount Rs |
Date | Particulars | Amount Rs |
||
2013 | 2013 | ||||||
Sep. 30 | Bank A/c | 29,272 | April 01 | Balance b/d | 54,208 | ||
2014 | Sep. 30 | Interest A/c (WN 2) | 2,168 | ||||
March 31 | Bank A/c | 28,188 | 2014 | ||||
March 31 | Interest A/c (WN 2) | 1,084 | |||||
57,460 | 57,460 | ||||||
Working Notes:
WN 1: Calculation of Share of Goodwill
WN 2: Calculation of Share of Interest
Page No 4.135:
Question 71:
Revaluation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs |
Particulars | Amount Rs |
|||
Provision for Doubtful Debts A/c | 1,800 | Furniture A/c | 3,750 | |||
Machinery A/c | 12,000 | Stock A/c | 3,200 | |||
Advertisement Expenses A/c | 2,100 | |||||
Loss transferred to: | ||||||
X’s Capital A/c
|
2,375 | |||||
Y’s Capital A/c
|
1,583 | |||||
Z’s Capital A/c
|
792 | 4,750 | ||||
13,800 | 13,800 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | X | Y | Z | Particulars | X | Y | Z | ||
Balance b/d (Current A/c) | 5,000 | Balance b/d (Capital A/c) | 1,50,000 | 1,00,000 | 50,000 | ||||
Revaluation A/c | 2,375 | 1,583 | 792 | Balance b/d (Current A/c) | 8,000 | 2,500 | |||
Z’s Capital A/c | 3,000 | 2,000 | Workmen Compensation Reserve A/c | 3,000 | 2,000 | 1,000 | |||
Z’s Executor A/c | 54,208 | X’s Capital A/c | 3,000 | ||||||
Balance c/d | 1,67,625 | 1,08,917 | Y’s Capital A/c | 2,000 | |||||
General Reserve A/c | 12,000 | 8,000 | 4,000 | ||||||
1,73,000 | 1,12,500 | 60,000 | 1,73,000 | 1,12,500 | 60,000 | ||||
Z’s Executor’s Account | |||||||
Dr. | Cr. | ||||||
Date | Particulars | Amount Rs |
Date | Particulars | Amount Rs |
||
2013 | 2013 | ||||||
Sep. 30 | Bank A/c | 29,272 | April 01 | Balance b/d | 54,208 | ||
2014 | Sep. 30 | Interest A/c (WN 2) | 2,168 | ||||
March 31 | Bank A/c | 28,188 | 2014 | ||||
March 31 | Interest A/c (WN 2) | 1,084 | |||||
57,460 | 57,460 | ||||||
Working Notes:
WN 1: Calculation of Share of Goodwill
WN 2: Calculation of Share of Interest
Answer:
Calculation of Amount Payable to Legal Representative of B | |
Particulars | Amount Rs |
Capital Balance | 37,500 |
Add: | |
Interest on Capital | 1,125 |
Profit and Loss Suspense | 27,500 |
Drawings | 40,000 |
General Reserve | 8,333 |
1,14,458 | |
Less: | |
Drawings | 25,000 |
Interest on Drawings A/c | 625 |
Total | 88,833 |
Working Notes:
WN 1: Calculation of Interest on Capital
Interest on Capital =
WN 2: Calculation of Profit
Total Profit = 1,62,500 + 1,60,000 + 1,72,500 = Rs 4,95,000
B’s Share =
WN 3: Calculation of Interest on Drawings
Interest on drawings =
Since, date of drawings has not been specified, thus, interest has been calculated for a average period of 3 months as drawings were given for the period of 6 months.
Page No 4.135:
Question 72:
Calculation of Amount Payable to Legal Representative of B | |
Particulars | Amount Rs |
Capital Balance | 37,500 |
Add: | |
Interest on Capital | 1,125 |
Profit and Loss Suspense | 27,500 |
Drawings | 40,000 |
General Reserve | 8,333 |
1,14,458 | |
Less: | |
Drawings | 25,000 |
Interest on Drawings A/c | 625 |
Total | 88,833 |
Working Notes:
WN 1: Calculation of Interest on Capital
Interest on Capital =
WN 2: Calculation of Profit
Total Profit = 1,62,500 + 1,60,000 + 1,72,500 = Rs 4,95,000
B’s Share =
WN 3: Calculation of Interest on Drawings
Interest on drawings =
Since, date of drawings has not been specified, thus, interest has been calculated for a average period of 3 months as drawings were given for the period of 6 months.
Answer:
Revaluation Account | |||||||
Dr. | Cr. | ||||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||||
Stock A/c | 24,000 | Land and Building A/c | 75,000 | ||||
Provision for Doubtful Debts A/c | 15,000 | ||||||
Profit transferred to: | |||||||
P’s Capital A/c
|
12,000 | ||||||
Q’s Capital A/c
|
18,000 | ||||||
R’s Capital A/c
|
6,000 | 36,000 | |||||
75,000 | 75,000 | ||||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
Q’s Capital A/c | 54,000 | Balance b/d | 3,00,000 | 6,00,000 | 9,00,000 | ||||
R’s Capital A/c | 90,000 | Policy A/c | 60,000 | 90,000 | 30,000 | ||||
Advertisement Suspense A/c | 12,000 | 18,000 | 6,000 | P’s Capital A/c | 54,000 | 90,000 | |||
Goodwill A/c | 12,000 | 18,000 | 6,000 | Workmen Compensation Reserve A/c | 12,000 | 18,000 | 6,000 | ||
Bank A/c | 5,11,500 | Investments Fluctuation Reserve A/c | 6,000 | 9,000 | 3,000 | ||||
R’s Executor A/c | 5,11,500 | Revaluation A/c | 12,000 | 18,000 | 6,000 | ||||
Balance c/d | 2,22,000 | 7,53,000 | |||||||
3,90,000 | 7,89,000 | 10,35,000 | 3,90,000 | 7,89,000 | 10,35,000 | ||||
Balance Sheet
as on April 01, 2016 after R’s death
|
|||||
Liabilities | Amount Rs |
Assets | Amount Rs |
||
Creditors | 7,20,000 | Land and Building | 8,25,000 | ||
Capital A/cs: | Investments | 1,38,000 | |||
P
|
2,22,000 | Stock | 2,16,000 | ||
Q
|
7,53,000 | 9,75,000 | Debtors | 9,00,000 | |
Employees Provident Fund | 3,60,000 |
Less: Provision for Doubtful Debts
|
45,000 | 8,55,000 | |
Workmen Compensation Reserve | 24,000 | Bank (8,88,000 – 5,11,500 + 1,80,000) | 5,56,500 | ||
R’s Executor A/c | 5,11,500 | ||||
25,90,500 | 25,90,500 | ||||
Working Notes:
WN 1: Calculation of Gaining Ratio
Gaining Ratio = New Ratio – Old Ratio
Old Ratio = 2 : 3 : 1
New Ratio = 3 : 2
WN 2: Calculation of Share of Goodwill
Total Profit = 1,35,000 + 2,70,000 + 4,05,000 = Rs 8,10,000
Goodwill = Average Profit × 1 Year of Purchase
Goodwill = 2,70,000 × 2 = Rs 5,40,000
Page No 4.136:
Question 73:
Revaluation Account | |||||||
Dr. | Cr. | ||||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||||
Stock A/c | 24,000 | Land and Building A/c | 75,000 | ||||
Provision for Doubtful Debts A/c | 15,000 | ||||||
Profit transferred to: | |||||||
P’s Capital A/c
|
12,000 | ||||||
Q’s Capital A/c
|
18,000 | ||||||
R’s Capital A/c
|
6,000 | 36,000 | |||||
75,000 | 75,000 | ||||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Particulars | P | Q | R | Particulars | P | Q | R | ||
Q’s Capital A/c | 54,000 | Balance b/d | 3,00,000 | 6,00,000 | 9,00,000 | ||||
R’s Capital A/c | 90,000 | Policy A/c | 60,000 | 90,000 | 30,000 | ||||
Advertisement Suspense A/c | 12,000 | 18,000 | 6,000 | P’s Capital A/c | 54,000 | 90,000 | |||
Goodwill A/c | 12,000 | 18,000 | 6,000 | Workmen Compensation Reserve A/c | 12,000 | 18,000 | 6,000 | ||
Bank A/c | 5,11,500 | Investments Fluctuation Reserve A/c | 6,000 | 9,000 | 3,000 | ||||
R’s Executor A/c | 5,11,500 | Revaluation A/c | 12,000 | 18,000 | 6,000 | ||||
Balance c/d | 2,22,000 | 7,53,000 | |||||||
3,90,000 | 7,89,000 | 10,35,000 | 3,90,000 | 7,89,000 | 10,35,000 | ||||
Balance Sheet
as on April 01, 2016 after R’s death
|
|||||
Liabilities | Amount Rs |
Assets | Amount Rs |
||
Creditors | 7,20,000 | Land and Building | 8,25,000 | ||
Capital A/cs: | Investments | 1,38,000 | |||
P
|
2,22,000 | Stock | 2,16,000 | ||
Q
|
7,53,000 | 9,75,000 | Debtors | 9,00,000 | |
Employees Provident Fund | 3,60,000 |
Less: Provision for Doubtful Debts
|
45,000 | 8,55,000 | |
Workmen Compensation Reserve | 24,000 | Bank (8,88,000 – 5,11,500 + 1,80,000) | 5,56,500 | ||
R’s Executor A/c | 5,11,500 | ||||
25,90,500 | 25,90,500 | ||||
Working Notes:
WN 1: Calculation of Gaining Ratio
Gaining Ratio = New Ratio – Old Ratio
Old Ratio = 2 : 3 : 1
New Ratio = 3 : 2
WN 2: Calculation of Share of Goodwill
Total Profit = 1,35,000 + 2,70,000 + 4,05,000 = Rs 8,10,000
Goodwill = Average Profit × 1 Year of Purchase
Goodwill = 2,70,000 × 2 = Rs 5,40,000
Answer:
Akhil’s Capital Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Advertisement Suspense |
20,000 |
Balance b/d |
1,20,000 |
||
Akhil’s Executors A/c |
2,20,950 |
General reserve |
15,000 |
||
|
|
Interest on Capital |
7,200 |
||
|
|
Nikhil’s Capital A/c |
58,500 |
||
|
|
Sunil’s Capital A/c |
31,500 |
||
|
|
Profit & Loss Suspense A/c |
8,750 |
||
|
|
|
|
||
|
2,40,950 |
|
2,40,950 |
||
|
|
|
|
||
Working Notes:
WN1: Calculation of Share of Reserve
WN2: Calculation of Interest on Capital:
WN3: Calculation of Profit & Loss Suspense Balance:
WN4: Calculation of Share of Goodwill:
WN5: Calculation of Gaining Ratio
Note: Gaining Ratio is different from the answer given in the book.
Page No 4.137:
Question 74:
Akhil’s Capital Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Advertisement Suspense |
20,000 |
Balance b/d |
1,20,000 |
||
Akhil’s Executors A/c |
2,20,950 |
General reserve |
15,000 |
||
|
|
Interest on Capital |
7,200 |
||
|
|
Nikhil’s Capital A/c |
58,500 |
||
|
|
Sunil’s Capital A/c |
31,500 |
||
|
|
Profit & Loss Suspense A/c |
8,750 |
||
|
|
|
|
||
|
2,40,950 |
|
2,40,950 |
||
|
|
|
|
||
Working Notes:
WN1: Calculation of Share of Reserve
WN2: Calculation of Interest on Capital:
WN3: Calculation of Profit & Loss Suspense Balance:
WN4: Calculation of Share of Goodwill:
WN5: Calculation of Gaining Ratio
Note: Gaining Ratio is different from the answer given in the book.
Answer:
Journal
|
||||
Particulars
|
L.F.
|
Debit
Amount
Rs
|
Credit
Amount
Rs
|
|
General Reserve A/c
|
Dr.
|
|
10,000
|
|
To A’s Capital A/c
|
|
|
|
6,000
|
To B’s Capital
|
|
|
|
2,000
|
To C’s Capital A/c
|
|
|
|
2,000
|
(General reserve distributed among partners in their old ratio)
|
|
|
|
|
|
|
|
|
|
Land A/c
|
Dr.
|
|
1,00,000
|
|
To Revaluation A/c
|
|
|
|
1,00,000
|
(Increase in value of Land transferred to Revaluation Account)
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
68,000
|
|
To Plant and Machinery A/c
|
|
|
|
68,000
|
(Decrease in value of Plant and Machinery transferred to Revaluation Account)
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
32,000
|
|
To A’s Capital A/c
|
|
|
|
19,200
|
To B’s Capital A/c
|
|
|
|
6,400
|
To C’s Capital A/c
|
|
|
|
6,400
|
(Revaluation profit distributed among partners in their old ratio)
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c
|
Dr.
|
|
36,000
|
|
C’s Capital A/c
|
Dr.
|
|
12,000
|
|
To B’s Capital A/c
|
|
|
|
48,000
|
(B’s share of goodwill adjusted)
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c
|
Dr.
|
|
10,000
|
|
To B’s Drawings A/c
|
|
|
|
10,000
|
(B’s drawing charged from his capital account)
|
|
|
|
|
|
|
|
|
|
Profit and Loss Suspense A/c
|
Dr.
|
|
4,000
|
|
To B’s Capital A/c
|
|
|
|
4,000
|
(B’s share of profit transferred to his capital account)
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c
|
Dr.
|
|
4,63,200
|
|
To B’s Executor’s A/c
|
|
|
|
4,63,200
|
(Amount due to B after all adjustments transferred to his Executor’s Account)
|
|
|
|
|
|
|
|
|
|
WN 1 Calculation of Goodwill
Goodwill = Average Profit × Number of Year’s Purchase
∴ Goodwill = Average Profit × Number of Years’ Purchase
= 1,20,000 × 2 = Rs 2,40,000
WN 2 Adjustment of Goodwill
Old Ratio (A, B and C) = 3 : 1 : 1
B died.
∴ New Ratio (A and C) = 3 : 1 and
Gaining Ratio = 3 : 1
B’s Share in Goodwill =
This share of goodwill is to be distributed between A and C in their gaining ratio (i.e. 3 : 1).
WN 3 Calculation of B’s Share of Profit
WN 4
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Plan and Machinery |
68,000 |
Land |
1,00,000 |
|
Profit transferred to: |
|
|
|
|
A’s Capital A/c |
19,200 |
|
|
|
B’s Capital A/c |
6,400 |
|
|
|
C’s Capital A/c |
6,400 |
32,000 |
|
|
|
1,00,000 |
|
1,00,000 |
|
|
|
|
|
WN 5
B’s Capital Account
|
|||
Dr.
|
|
Cr.
|
|
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
Drawings A/c
|
10,000
|
Balance b/d
|
4,12,800
|
B’s Executor’s A/c
|
4,63,200
|
General Reserve
|
2,000
|
|
|
Profit and Loss Suspense A/c
|
4,000
|
|
|
A’s Capital A/c
|
36,000
|
|
|
C’s Capital A/c
|
12,000
|
|
|
Revaluation A/c (Profit)
|
6,400
|
|
|
|
|
|
4,73,200
|
|
4,73,200
|
|
|
|
|
Page No 4.137:
Question 75:
Journal
|
||||
Particulars
|
L.F.
|
Debit
Amount
Rs
|
Credit
Amount
Rs
|
|
General Reserve A/c
|
Dr.
|
|
10,000
|
|
To A’s Capital A/c
|
|
|
|
6,000
|
To B’s Capital
|
|
|
|
2,000
|
To C’s Capital A/c
|
|
|
|
2,000
|
(General reserve distributed among partners in their old ratio)
|
|
|
|
|
|
|
|
|
|
Land A/c
|
Dr.
|
|
1,00,000
|
|
To Revaluation A/c
|
|
|
|
1,00,000
|
(Increase in value of Land transferred to Revaluation Account)
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
68,000
|
|
To Plant and Machinery A/c
|
|
|
|
68,000
|
(Decrease in value of Plant and Machinery transferred to Revaluation Account)
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
32,000
|
|
To A’s Capital A/c
|
|
|
|
19,200
|
To B’s Capital A/c
|
|
|
|
6,400
|
To C’s Capital A/c
|
|
|
|
6,400
|
(Revaluation profit distributed among partners in their old ratio)
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c
|
Dr.
|
|
36,000
|
|
C’s Capital A/c
|
Dr.
|
|
12,000
|
|
To B’s Capital A/c
|
|
|
|
48,000
|
(B’s share of goodwill adjusted)
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c
|
Dr.
|
|
10,000
|
|
To B’s Drawings A/c
|
|
|
|
10,000
|
(B’s drawing charged from his capital account)
|
|
|
|
|
|
|
|
|
|
Profit and Loss Suspense A/c
|
Dr.
|
|
4,000
|
|
To B’s Capital A/c
|
|
|
|
4,000
|
(B’s share of profit transferred to his capital account)
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c
|
Dr.
|
|
4,63,200
|
|
To B’s Executor’s A/c
|
|
|
|
4,63,200
|
(Amount due to B after all adjustments transferred to his Executor’s Account)
|
|
|
|
|
|
|
|
|
|
WN 1 Calculation of Goodwill
Goodwill = Average Profit × Number of Year’s Purchase
∴ Goodwill = Average Profit × Number of Years’ Purchase
= 1,20,000 × 2 = Rs 2,40,000
WN 2 Adjustment of Goodwill
Old Ratio (A, B and C) = 3 : 1 : 1
B died.
∴ New Ratio (A and C) = 3 : 1 and
Gaining Ratio = 3 : 1
B’s Share in Goodwill =
This share of goodwill is to be distributed between A and C in their gaining ratio (i.e. 3 : 1).
WN 3 Calculation of B’s Share of Profit
WN 4
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Plan and Machinery |
68,000 |
Land |
1,00,000 |
|
Profit transferred to: |
|
|
|
|
A’s Capital A/c |
19,200 |
|
|
|
B’s Capital A/c |
6,400 |
|
|
|
C’s Capital A/c |
6,400 |
32,000 |
|
|
|
1,00,000 |
|
1,00,000 |
|
|
|
|
|
WN 5
B’s Capital Account
|
|||
Dr.
|
|
Cr.
|
|
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
Drawings A/c
|
10,000
|
Balance b/d
|
4,12,800
|
B’s Executor’s A/c
|
4,63,200
|
General Reserve
|
2,000
|
|
|
Profit and Loss Suspense A/c
|
4,000
|
|
|
A’s Capital A/c
|
36,000
|
|
|
C’s Capital A/c
|
12,000
|
|
|
Revaluation A/c (Profit)
|
6,400
|
|
|
|
|
|
4,73,200
|
|
4,73,200
|
|
|
|
|
Answer:
X’s Capital Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Goodwill A/c | 18,900 | Balance b/d | 90,000 | ||
X’s Executor’s A/c | 1,01,850 | Y’s Capital A/c | 5,250 | ||
Z’s Capital A/c | 5,250 | ||||
Profit and Loss Suspense A/c | 2,250 | ||||
Revaluation A/c (Profit) | 18,000 | ||||
1,20,750 | 1,20,750 | ||||
Working Notes:
WN 1: Calculation of X’s Profit Share
Total Profit = 30,000 + 24,000 + 27,000 = Rs 81,000
X’s Share =
WN 2: Calculation of Share of Goodwill
Total Profit= 30,000 + 24,000 + 27,000 + 42,000 + 34,500 = Rs 1,57,500
Goodwill = Average Profit × 1 Year of Purchase
Goodwill = 31,500 × 1 = Rs 31,500
X’s Share =
WN 3: Calculation of Revaluation Profit
Increase in Value of Freehold Property = Rs 54,000
X’s Share =
Page No 4.138:
Question 76:
X’s Capital Account | |||||
Dr. | Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Goodwill A/c | 18,900 | Balance b/d | 90,000 | ||
X’s Executor’s A/c | 1,01,850 | Y’s Capital A/c | 5,250 | ||
Z’s Capital A/c | 5,250 | ||||
Profit and Loss Suspense A/c | 2,250 | ||||
Revaluation A/c (Profit) | 18,000 | ||||
1,20,750 | 1,20,750 | ||||
Working Notes:
WN 1: Calculation of X’s Profit Share
Total Profit = 30,000 + 24,000 + 27,000 = Rs 81,000
X’s Share =
WN 2: Calculation of Share of Goodwill
Total Profit= 30,000 + 24,000 + 27,000 + 42,000 + 34,500 = Rs 1,57,500
Goodwill = Average Profit × 1 Year of Purchase
Goodwill = 31,500 × 1 = Rs 31,500
X’s Share =
WN 3: Calculation of Revaluation Profit
Increase in Value of Freehold Property = Rs 54,000
X’s Share =
Answer:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Fixed Assets |
2,500 |
Creditors |
2,000 |
|||
Provision for Doubtful Debts |
5,000 |
Loss on Revaluation transferred to |
|
|||
|
|
X’s Capital A/c |
2,750 |
|
||
|
|
Y’s Capital A/c |
1,650 |
|
||
|
|
Z’s Capital A/c |
1,100 |
5,500 |
||
|
7,500 |
|
7,500 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
Revaluation A/c |
2,750 |
1,650 |
1,100 |
Balance b/d |
40,000 |
62,000 |
33,000 |
|
Goodwill A/c |
2,500 |
1,500 |
1,000 |
Y’s Capital A/c |
8,000 |
|
|
|
Advertisement Suspense A/c |
2,500 |
1,500 |
1,000 |
Z’s Capital A/c |
32,000 |
|
|
|
X’s Capital A/c |
|
8,000 |
32,000 |
Profit and Loss A/c |
42,500 |
25,500 |
17,000 |
|
Bank A/c |
1,19,750 |
|
|
Workmen Compensation Reserve |
5,000 |
3,000 |
2,000 |
|
Balance c/d (WN2) |
|
79,000 |
1,18,500 |
Bank A/c (Bal. Fig.) |
|
1,150 |
1,01,600 |
|
|
1,27,500 |
91,650 |
1,53,600 |
|
1,27,500 |
91,650 |
1,53,600 |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1: Calculation of sacrificing/gaining ratio
WN 2: Calculation of New Capital of Y and Z
Page No 4.138:
Question 77:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Fixed Assets |
2,500 |
Creditors |
2,000 |
|||
Provision for Doubtful Debts |
5,000 |
Loss on Revaluation transferred to |
|
|||
|
|
X’s Capital A/c |
2,750 |
|
||
|
|
Y’s Capital A/c |
1,650 |
|
||
|
|
Z’s Capital A/c |
1,100 |
5,500 |
||
|
7,500 |
|
7,500 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
Revaluation A/c |
2,750 |
1,650 |
1,100 |
Balance b/d |
40,000 |
62,000 |
33,000 |
|
Goodwill A/c |
2,500 |
1,500 |
1,000 |
Y’s Capital A/c |
8,000 |
|
|
|
Advertisement Suspense A/c |
2,500 |
1,500 |
1,000 |
Z’s Capital A/c |
32,000 |
|
|
|
X’s Capital A/c |
|
8,000 |
32,000 |
Profit and Loss A/c |
42,500 |
25,500 |
17,000 |
|
Bank A/c |
1,19,750 |
|
|
Workmen Compensation Reserve |
5,000 |
3,000 |
2,000 |
|
Balance c/d (WN2) |
|
79,000 |
1,18,500 |
Bank A/c (Bal. Fig.) |
|
1,150 |
1,01,600 |
|
|
1,27,500 |
91,650 |
1,53,600 |
|
1,27,500 |
91,650 |
1,53,600 |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1: Calculation of sacrificing/gaining ratio
WN 2: Calculation of New Capital of Y and Z
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2014
|
|
|
|
|
|
August 01
|
Patents A/c
|
Dr.
|
|
85,000
|
|
|
Investments A/c
|
Dr.
|
|
6,000
|
|
|
To Revaluation A/c
|
|
|
|
91,000
|
|
(Patens recorded at a lesser value and investments sold at a profit of Rs 6,000)
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
16,000
|
|
|
To Machinery A/c
|
|
|
|
16,000
|
|
(Machinery is recorded with excess value of
Rs 16,000 in the books)
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
75,000
|
|
|
To X’s Capital A/c
|
|
|
37,500
|
|
|
To Y’s Capital A/c
|
|
|
|
22,500
|
|
To Z’s Capital A/c
|
|
|
|
15,000
|
|
(Profit on revaluation transferred to Partners’ Capital Account in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c
|
Dr.
|
|
21,875
|
|
|
Y’s Capital A/c
|
|
|
13,125
|
|
|
To Z’ s Capital A/c
|
|
|
|
35,000
|
|
(Z’s share of goodwill compensated by X and Y in gaining ratio)
|
|
|
|
|
|
|
|
|
|
|
|
Z’s Capital A/c
|
Dr.
|
|
5,000
|
|
|
To Profit and Loss Suspense A/c
|
|
|
|
5,000
|
|
(Z’s share in loss till his death)
|
|
|
|
|
|
|
|
|
|
|
|
Workmen Compensation Reserve
|
Dr.
|
|
17,500
|
|
|
To Workmen Compensation Claim
|
|
|
|
10,000
|
|
To X’s Capital A/c
|
|
|
|
3,750
|
|
To Y’s Capital A/c
|
|
|
|
2,250
|
|
To Z’s Capital A/c
|
|
|
|
1,500
|
|
(Amount transferred for workmen compensation claim and excess amount is distributed among the partners in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
Investments Fluctuation Reserve
|
Dr.
|
|
17,500
|
|
|
To X’s Capital A/c
|
|
|
|
8,750
|
|
To Y’s Capital A/c
|
|
|
|
5,250
|
|
To Z’s Capital A/c
|
|
|
|
3,500
|
|
(Entire balance of IFF is distributed among the partners in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c
|
Dr.
|
|
2,500
|
|
|
Y’s Capital A/c
|
Dr.
|
|
1,500
|
|
|
Z’s Capital A/c
|
Dr.
|
|
1,000
|
|
|
To Advertisement Expenditure A/c
|
|
|
|
5,000
|
|
(Advertisement expenditure debited to partners’ capital accounts in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c
|
Dr.
|
|
1,87,500
|
|
|
Y’s Capital A/c
|
Dr.
|
|
1,12,500
|
|
|
Z’s Capital A/c
|
Dr.
|
|
75,000
|
|
|
To Profit and Loss A/c
|
|
|
|
3,75,000
|
|
(Loss during 2013-14 debited to partners’ capital accounts in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
Z’s Capital A/c
|
Dr.
|
|
1,24,000
|
|
|
To Z’s Executor A/c
|
|
|
1,24,000
|
|
|
(Z’s capital balance is transferred to Z’s Executor Account)
|
|
|
|
|
|
|
|
|
|
|
|
Z’s Executor A/c
|
Dr.
|
|
24,000
|
|
|
To Bank A/c
|
|
|
24,000
|
|
|
(Payment made to Z’s executor)
|
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
Profit and Loss A/c |
1,87,500 |
1,12,500 |
75,000 |
Balance b/d |
3,37,500 |
2,37,500 |
1,85,000 |
|
Z’s Capital A/c |
21,875 |
13,125 |
|
Revaluation A/c |
37,500 |
22,500 |
15,000 |
|
Profit and Loss Suspense A/c |
|
|
5,000 |
X’s Capital A/c |
|
|
21,875 |
|
Advertisement Suspense A/c |
2,500 |
1,500 |
1,000 |
Y’s Capital A/c |
|
|
13,125 |
|
Drawings A/c |
|
|
25,000 |
Workmen Compensation Reserve |
3,750 |
2,250 |
1,500 |
|
Goodwill A/c |
12,500 |
7,500 |
5,000 |
Investments Fluctuation Reserve |
8,750 |
5,250 |
3,500 |
|
Loan to Z |
|
|
5,000 |
|
|
|
|
|
Z’s Executor A/c |
|
|
1,24,000 |
|
|
|
|
|
Balance c/d |
1,63,125 |
1,32,875 |
|
|
|
|
|
|
|
3,87,500 |
2,67,500 |
2,40,000 |
|
3,87,500 |
2,67,500 |
2,40,000 |
|
|
|
|
|
|
|
|
|
Balance Sheet
as at August 01, 2014
|
||||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|||
Capital A/cs:
|
|
|
|
|||
X
|
1,63,125
|
|
Patents
|
1,30,000
|
|
|
Y
|
1,32,875
|
2,96,000
|
Add: Undervaluation
|
85,000
|
2,15,000
|
|
Sundry Creditors
|
55,000
|
Machinery
|
1,56,000
|
|
||
Z’s Executor Loan A/c
|
1,00,000
|
Less: Overvaluation
|
16,000
|
1,40,000
|
||
Workmen Compensation Claim
|
10,000
|
Stock
|
50,000
|
|||
Profit and Loss Suspense
|
5,000
|
Sundry Debtors
|
62,000
|
|
||
|
|
|
Less: Provision for DD
|
2,000
|
60,000
|
|
|
|
|
Cash at Bank (29,000 + 21,000 – 24,000 – 25,000)
|
1,000
|
||
|
|
|
|
|
||
|
4,66,000
|
|
4,66,000
|
|||
|
|
|
|
Z’s Executor’s Account
|
|||||
Dr.
|
|
Cr.
|
|||
Date
|
Particulars
|
Amount
Rs
|
Date
|
Particulars
|
Amount
Rs
|
2014
|
|
|
2014
|
|
|
Aug. 01
|
Bank A/c
|
24,000
|
Aug. 01
|
T’s Capital A/c
|
1,24,000
|
2015
|
|
|
2015
|
|
|
Feb. 01
|
Cash A/c (25,000 + 5,000)
|
30,000
|
Feb. 01
|
Interest (1,00,000 ×10% for 6 months)
|
5,000
|
March 31
|
Balance c/d
|
76,250
|
March 31
|
Interest (75,000 ×10% for 2 months)
|
1,250
|
|
|
1,27,250
|
|
|
1,27,250
|
2015
|
|
|
2015
|
|
|
August 01
|
Cash A/c (25,000 + 1,250 + 2,500)
|
28,750
|
April 01
|
Balance b/d
|
76,250
|
2016
|
|
|
August 01
|
Interest (75,000 × 10% for 4 months)
|
2,500
|
Feb. 01
|
Cash A/c (25,000 + 2,500)
|
27,500
|
2016
|
|
|
March 31
|
Balance c/d
|
25,417
|
Feb. 01
|
Interest (50,000 × 10% for 6 months)
|
2,500
|
|
|
|
March 31
|
Interest (25,000 × 10% for 2 months)
|
417
|
|
|
81,667
|
|
|
81,667
|
2016
|
|
|
2016
|
|
|
August 01
|
Cash A/c (25,000 + 417 + 833)
|
26,250
|
April 01
|
Balance b/d
|
25,417
|
|
|
|
August 01
|
Interest (25,000 × 10% for 4 months)
|
833
|
|
|
26,250
|
|
|
26,250
|
|
|
|
|
|
|
Working Notes:
WN 1: Calculation of Goodwill
WN 2: Calculation of Z’s Profit Share
Page No 4.139:
Question 78:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2014
|
|
|
|
|
|
August 01
|
Patents A/c
|
Dr.
|
|
85,000
|
|
|
Investments A/c
|
Dr.
|
|
6,000
|
|
|
To Revaluation A/c
|
|
|
|
91,000
|
|
(Patens recorded at a lesser value and investments sold at a profit of Rs 6,000)
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
16,000
|
|
|
To Machinery A/c
|
|
|
|
16,000
|
|
(Machinery is recorded with excess value of
Rs 16,000 in the books)
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
75,000
|
|
|
To X’s Capital A/c
|
|
|
37,500
|
|
|
To Y’s Capital A/c
|
|
|
|
22,500
|
|
To Z’s Capital A/c
|
|
|
|
15,000
|
|
(Profit on revaluation transferred to Partners’ Capital Account in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c
|
Dr.
|
|
21,875
|
|
|
Y’s Capital A/c
|
|
|
13,125
|
|
|
To Z’ s Capital A/c
|
|
|
|
35,000
|
|
(Z’s share of goodwill compensated by X and Y in gaining ratio)
|
|
|
|
|
|
|
|
|
|
|
|
Z’s Capital A/c
|
Dr.
|
|
5,000
|
|
|
To Profit and Loss Suspense A/c
|
|
|
|
5,000
|
|
(Z’s share in loss till his death)
|
|
|
|
|
|
|
|
|
|
|
|
Workmen Compensation Reserve
|
Dr.
|
|
17,500
|
|
|
To Workmen Compensation Claim
|
|
|
|
10,000
|
|
To X’s Capital A/c
|
|
|
|
3,750
|
|
To Y’s Capital A/c
|
|
|
|
2,250
|
|
To Z’s Capital A/c
|
|
|
|
1,500
|
|
(Amount transferred for workmen compensation claim and excess amount is distributed among the partners in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
Investments Fluctuation Reserve
|
Dr.
|
|
17,500
|
|
|
To X’s Capital A/c
|
|
|
|
8,750
|
|
To Y’s Capital A/c
|
|
|
|
5,250
|
|
To Z’s Capital A/c
|
|
|
|
3,500
|
|
(Entire balance of IFF is distributed among the partners in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c
|
Dr.
|
|
2,500
|
|
|
Y’s Capital A/c
|
Dr.
|
|
1,500
|
|
|
Z’s Capital A/c
|
Dr.
|
|
1,000
|
|
|
To Advertisement Expenditure A/c
|
|
|
|
5,000
|
|
(Advertisement expenditure debited to partners’ capital accounts in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c
|
Dr.
|
|
1,87,500
|
|
|
Y’s Capital A/c
|
Dr.
|
|
1,12,500
|
|
|
Z’s Capital A/c
|
Dr.
|
|
75,000
|
|
|
To Profit and Loss A/c
|
|
|
|
3,75,000
|
|
(Loss during 2013-14 debited to partners’ capital accounts in old ratio)
|
|
|
|
|
|
|
|
|
|
|
|
Z’s Capital A/c
|
Dr.
|
|
1,24,000
|
|
|
To Z’s Executor A/c
|
|
|
1,24,000
|
|
|
(Z’s capital balance is transferred to Z’s Executor Account)
|
|
|
|
|
|
|
|
|
|
|
|
Z’s Executor A/c
|
Dr.
|
|
24,000
|
|
|
To Bank A/c
|
|
|
24,000
|
|
|
(Payment made to Z’s executor)
|
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
Profit and Loss A/c |
1,87,500 |
1,12,500 |
75,000 |
Balance b/d |
3,37,500 |
2,37,500 |
1,85,000 |
|
Z’s Capital A/c |
21,875 |
13,125 |
|
Revaluation A/c |
37,500 |
22,500 |
15,000 |
|
Profit and Loss Suspense A/c |
|
|
5,000 |
X’s Capital A/c |
|
|
21,875 |
|
Advertisement Suspense A/c |
2,500 |
1,500 |
1,000 |
Y’s Capital A/c |
|
|
13,125 |
|
Drawings A/c |
|
|
25,000 |
Workmen Compensation Reserve |
3,750 |
2,250 |
1,500 |
|
Goodwill A/c |
12,500 |
7,500 |
5,000 |
Investments Fluctuation Reserve |
8,750 |
5,250 |
3,500 |
|
Loan to Z |
|
|
5,000 |
|
|
|
|
|
Z’s Executor A/c |
|
|
1,24,000 |
|
|
|
|
|
Balance c/d |
1,63,125 |
1,32,875 |
|
|
|
|
|
|
|
3,87,500 |
2,67,500 |
2,40,000 |
|
3,87,500 |
2,67,500 |
2,40,000 |
|
|
|
|
|
|
|
|
|
Balance Sheet
as at August 01, 2014
|
||||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|||
Capital A/cs:
|
|
|
|
|||
X
|
1,63,125
|
|
Patents
|
1,30,000
|
|
|
Y
|
1,32,875
|
2,96,000
|
Add: Undervaluation
|
85,000
|
2,15,000
|
|
Sundry Creditors
|
55,000
|
Machinery
|
1,56,000
|
|
||
Z’s Executor Loan A/c
|
1,00,000
|
Less: Overvaluation
|
16,000
|
1,40,000
|
||
Workmen Compensation Claim
|
10,000
|
Stock
|
50,000
|
|||
Profit and Loss Suspense
|
5,000
|
Sundry Debtors
|
62,000
|
|
||
|
|
|
Less: Provision for DD
|
2,000
|
60,000
|
|
|
|
|
Cash at Bank (29,000 + 21,000 – 24,000 – 25,000)
|
1,000
|
||
|
|
|
|
|
||
|
4,66,000
|
|
4,66,000
|
|||
|
|
|
|
Z’s Executor’s Account
|
|||||
Dr.
|
|
Cr.
|
|||
Date
|
Particulars
|
Amount
Rs
|
Date
|
Particulars
|
Amount
Rs
|
2014
|
|
|
2014
|
|
|
Aug. 01
|
Bank A/c
|
24,000
|
Aug. 01
|
T’s Capital A/c
|
1,24,000
|
2015
|
|
|
2015
|
|
|
Feb. 01
|
Cash A/c (25,000 + 5,000)
|
30,000
|
Feb. 01
|
Interest (1,00,000 ×10% for 6 months)
|
5,000
|
March 31
|
Balance c/d
|
76,250
|
March 31
|
Interest (75,000 ×10% for 2 months)
|
1,250
|
|
|
1,27,250
|
|
|
1,27,250
|
2015
|
|
|
2015
|
|
|
August 01
|
Cash A/c (25,000 + 1,250 + 2,500)
|
28,750
|
April 01
|
Balance b/d
|
76,250
|
2016
|
|
|
August 01
|
Interest (75,000 × 10% for 4 months)
|
2,500
|
Feb. 01
|
Cash A/c (25,000 + 2,500)
|
27,500
|
2016
|
|
|
March 31
|
Balance c/d
|
25,417
|
Feb. 01
|
Interest (50,000 × 10% for 6 months)
|
2,500
|
|
|
|
March 31
|
Interest (25,000 × 10% for 2 months)
|
417
|
|
|
81,667
|
|
|
81,667
|
2016
|
|
|
2016
|
|
|
August 01
|
Cash A/c (25,000 + 417 + 833)
|
26,250
|
April 01
|
Balance b/d
|
25,417
|
|
|
|
August 01
|
Interest (25,000 × 10% for 4 months)
|
833
|
|
|
26,250
|
|
|
26,250
|
|
|
|
|
|
|
Working Notes:
WN 1: Calculation of Goodwill
WN 2: Calculation of Z’s Profit Share
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
2,700 |
|
|
To Stock A/c |
|
|
|
1,000 |
|
To Furniture A/c |
|
|
|
400 |
|
To Provision for Doubtful Debts A/c |
|
|
|
1,000 |
|
To Outstanding Expenses A/c |
|
|
|
300 |
|
(Assets revalued) |
|
|
|
|
|
|
|
|
|
|
|
Machinery A/c |
Dr. |
|
3,000 |
|
|
To Revaluation A/c |
|
|
|
3,000 |
|
(Assets revalued) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
300 |
|
|
To X’s Capital A/c |
|
|
|
150 |
|
To Y’s Capital A/c |
|
|
|
100 |
|
To Z Capital A/c |
|
|
|
50 |
|
(Profit on Revaluation transferred to Partner’s Capital A/c ) |
|
|
|
|
|
|
|
|
|
|
|
Reserve A/c |
Dr. |
|
24,000 |
|
|
Workmen Compensation Reserve A/c |
Dr. |
|
6,000 |
|
|
To X’s Capital A/c |
|
|
|
15,000 |
|
To Y’s Capital A/c |
|
|
|
10,000 |
|
To Z Capital A/c |
|
|
|
5,000 |
|
(Reserve shared among partners) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
2,400 |
|
|
Z Capital A/c |
Dr. |
|
5,600 |
|
|
To Y’s Capital A/c |
|
|
|
8,000 |
|
(Goodwill adjusted with Partner’s Capital A/c) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
45,000 |
|
|
To X’s Capital A/c |
|
|
|
22,500 |
|
To Y’s Capital A/c |
|
|
|
15,000 |
|
To Z’s Capital A/c |
|
|
|
7,500 |
|
(Profit shared among Partners) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
55,100 |
|
|
To X’s Capital A/c |
|
|
|
15,130 |
|
To Z’s Capital A/c |
|
|
|
39,970 |
|
(Cash brought in by Partners) |
|
|
|
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr |
|
93,100 |
|
|
To Bank A/c |
|
|
|
93,100 |
|
(Cash withdrawn by Y) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|
||||||||||||||
Dr. |
|
Cr. |
|
||||||||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
|||||||
|
|
|
|
Balance b/d |
80,000 |
60,000 |
40,000 |
|
|||||||
Z’s Capital A/c |
2,400 |
|
5,600 |
Revaluation A/c |
150 |
100 |
50 |
|
|||||||
Bank A/c |
|
93,100 |
|
Workmen Compensation Reserve |
3,000 |
2,000 |
1,000 |
|
|||||||
|
|
|
|
X’s Capital A/c |
|
2,400 |
|
|
|||||||
Balance c/d |
1,30,380 |
|
86,920 |
Z’s Capital A/c |
|
5,600 |
|
|
|||||||
|
|
|
|
Reserve |
12,000 |
8,000 |
4,000 |
|
|||||||
|
|
|
|
P&L Appropriation |
22,500 |
15,000 |
7,500 |
|
|||||||
|
|
|
|
Bank (bal. figure) |
15,130 |
|
39,970 |
|
|||||||
|
1,32,780 |
93,100 |
92,520 |
|
1,32,780 |
93,100 |
92,520 |
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Balance sheet as on June 30, 2014 |
|||||||||||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||||||||||||
Creditors |
60,000 |
Debtors |
80,000 |
|
|||||||||||
Outstanding Expenses |
300 |
Less:Provision for D/D |
4,000 |
76,000 |
|||||||||||
Capital |
|
Stock |
49,000 |
||||||||||||
X |
1,30,380 |
|
Bank |
30,000 |
|||||||||||
Z |
86,920 |
2,17,300 |
Furniture |
600 |
|||||||||||
|
|
Profit and Loss Appropriation A/c |
77,000 |
||||||||||||
|
|
Machinery |
45,000 |
||||||||||||
|
|
|
|
||||||||||||
|
2,77,600 |
|
2,77,600 |
||||||||||||
|
|
|
|
||||||||||||
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Share in Goodwill:
WN3: Calculation of New Capitals of X and Z
WN4: Calculation of Bank Balance
Particulars |
Amount Rs
|
Cash at bank on 30.June,2014 | 68,000 |
Add: Cash brought in by Partner | |
X’s Capital A/c | 15,130 |
Z’s Capital A/c | 39,970 |
Less: Cash withdrawn by Partner | |
Y’s Capital A/c | 93,100 |
Closing Bank Balance | 30,000 |
WN 5: Calculation P&L Appropriation A/c balance
Particulars |
Amount Rs |
Opening Cash at Bank | 1,00,000 |
Add: Profit earned till retiremnet | 45,000 |
Less: Cash at bank on 30.June,2014 | 68,000 |
P&L Appropriation A/c balance | 77,000 |
Assuming that change in Profit and Loss Appropriation A/c affects Cash at Bank balance.
Page No 4.140:
Question 79:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
2,700 |
|
|
To Stock A/c |
|
|
|
1,000 |
|
To Furniture A/c |
|
|
|
400 |
|
To Provision for Doubtful Debts A/c |
|
|
|
1,000 |
|
To Outstanding Expenses A/c |
|
|
|
300 |
|
(Assets revalued) |
|
|
|
|
|
|
|
|
|
|
|
Machinery A/c |
Dr. |
|
3,000 |
|
|
To Revaluation A/c |
|
|
|
3,000 |
|
(Assets revalued) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
300 |
|
|
To X’s Capital A/c |
|
|
|
150 |
|
To Y’s Capital A/c |
|
|
|
100 |
|
To Z Capital A/c |
|
|
|
50 |
|
(Profit on Revaluation transferred to Partner’s Capital A/c ) |
|
|
|
|
|
|
|
|
|
|
|
Reserve A/c |
Dr. |
|
24,000 |
|
|
Workmen Compensation Reserve A/c |
Dr. |
|
6,000 |
|
|
To X’s Capital A/c |
|
|
|
15,000 |
|
To Y’s Capital A/c |
|
|
|
10,000 |
|
To Z Capital A/c |
|
|
|
5,000 |
|
(Reserve shared among partners) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
2,400 |
|
|
Z Capital A/c |
Dr. |
|
5,600 |
|
|
To Y’s Capital A/c |
|
|
|
8,000 |
|
(Goodwill adjusted with Partner’s Capital A/c) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
45,000 |
|
|
To X’s Capital A/c |
|
|
|
22,500 |
|
To Y’s Capital A/c |
|
|
|
15,000 |
|
To Z’s Capital A/c |
|
|
|
7,500 |
|
(Profit shared among Partners) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
55,100 |
|
|
To X’s Capital A/c |
|
|
|
15,130 |
|
To Z’s Capital A/c |
|
|
|
39,970 |
|
(Cash brought in by Partners) |
|
|
|
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr |
|
93,100 |
|
|
To Bank A/c |
|
|
|
93,100 |
|
(Cash withdrawn by Y) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|
||||||||||||||
Dr. |
|
Cr. |
|
||||||||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
|||||||
|
|
|
|
Balance b/d |
80,000 |
60,000 |
40,000 |
|
|||||||
Z’s Capital A/c |
2,400 |
|
5,600 |
Revaluation A/c |
150 |
100 |
50 |
|
|||||||
Bank A/c |
|
93,100 |
|
Workmen Compensation Reserve |
3,000 |
2,000 |
1,000 |
|
|||||||
|
|
|
|
X’s Capital A/c |
|
2,400 |
|
|
|||||||
Balance c/d |
1,30,380 |
|
86,920 |
Z’s Capital A/c |
|
5,600 |
|
|
|||||||
|
|
|
|
Reserve |
12,000 |
8,000 |
4,000 |
|
|||||||
|
|
|
|
P&L Appropriation |
22,500 |
15,000 |
7,500 |
|
|||||||
|
|
|
|
Bank (bal. figure) |
15,130 |
|
39,970 |
|
|||||||
|
1,32,780 |
93,100 |
92,520 |
|
1,32,780 |
93,100 |
92,520 |
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Balance sheet as on June 30, 2014 |
|||||||||||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||||||||||||
Creditors |
60,000 |
Debtors |
80,000 |
|
|||||||||||
Outstanding Expenses |
300 |
Less:Provision for D/D |
4,000 |
76,000 |
|||||||||||
Capital |
|
Stock |
49,000 |
||||||||||||
X |
1,30,380 |
|
Bank |
30,000 |
|||||||||||
Z |
86,920 |
2,17,300 |
Furniture |
600 |
|||||||||||
|
|
Profit and Loss Appropriation A/c |
77,000 |
||||||||||||
|
|
Machinery |
45,000 |
||||||||||||
|
|
|
|
||||||||||||
|
2,77,600 |
|
2,77,600 |
||||||||||||
|
|
|
|
||||||||||||
Working Notes:
WN1: Calculation of Gaining Ratio
WN2: Calculation of Share in Goodwill:
WN3: Calculation of New Capitals of X and Z
WN4: Calculation of Bank Balance
Particulars |
Amount Rs
|
Cash at bank on 30.June,2014 | 68,000 |
Add: Cash brought in by Partner | |
X’s Capital A/c | 15,130 |
Z’s Capital A/c | 39,970 |
Less: Cash withdrawn by Partner | |
Y’s Capital A/c | 93,100 |
Closing Bank Balance | 30,000 |
WN 5: Calculation P&L Appropriation A/c balance
Particulars |
Amount Rs |
Opening Cash at Bank | 1,00,000 |
Add: Profit earned till retiremnet | 45,000 |
Less: Cash at bank on 30.June,2014 | 68,000 |
P&L Appropriation A/c balance | 77,000 |
Assuming that change in Profit and Loss Appropriation A/c affects Cash at Bank balance.
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
26,100
|
|
|
To Stock A/c
|
|
|
|
20,000
|
|
To Provision for Doubtful Debts A/c
|
|
|
|
1,100
|
|
To Outstanding Expenses A/c
|
|
|
|
5,000
|
|
(Assets revalued)
|
|
|
|
|
|
|
|
|
|
|
|
Patents A/c
|
Dr.
|
|
70,000
|
|
|
Machinery A/c
|
Dr.
|
|
19,000
|
|
|
Prepaid Insurance A/c
|
Dr.
|
|
5,000
|
|
|
Creditors A/c
|
Dr.
|
|
1,100
|
|
|
Investments A/c
|
Dr.
|
|
6,000
|
|
|
To Revaluation A/c
|
|
|
|
1,01,100
|
|
(Assets revalued)
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c
|
Dr.
|
|
75,000
|
|
|
To Khanna’s Capital A/c
|
|
|
|
37,500
|
|
To Seth’s Capital A/c
|
|
|
|
22,500
|
|
To Mehta’s Capital A/c
|
|
|
|
15,000
|
|
(Profit on Revaluation transferred to Partners capital A/c)
|
|
|
|
|
|
|
|
|
|
|
|
Investment Fluctuation Reserve A/c
|
Dr.
|
|
17,500
|
|
|
Workmen Compensation Reserve A/c
|
Dr.
|
|
7,500
|
|
|
To Khanna’s Capital A/c
|
|
|
|
12,500
|
|
To Seth’s Capital A/c
|
|
|
|
7,500
|
|
To Mehta’s Capital A/c
|
|
|
|
5,000
|
|
(Reserve shared among Partners capital A/c)
|
|
|
|
|
|
|
|
|
|
|
|
Khanna’s Capital A/c
|
Dr.
|
|
21,875
|
|
|
Seth’s Capital A/c
|
Dr.
|
|
13,125
|
|
|
To Mehta’s Capital A/c
|
|
|
|
35,000
|
|
(Goodwill adjusted among Partners capital A/c))
|
|
|
|
|
|
|
|
|
|
|
|
Khanna’s Capital A/c
|
Dr.
|
|
1,90,000
|
|
|
Seth’s Capital A/c
|
Dr.
|
|
1,14,000
|
|
|
Mehta’s Capital A/c
|
Dr.
|
|
76,000
|
|
|
To P&L A/c
|
|
|
|
3,75,000
|
|
To Advertisement Suspense A/c
|
|
|
|
5,000
|
|
(Losses shared among Partners capital A/c)
|
|
|
|
|
Khanna’s Capital A/c
|
Dr | 12,500 | |||
Seth’s Capital A/c
|
Dr | 7,500 | |||
Mehta’s Capital A/c
|
Dr | 5,000 |
|
||
To Goodwill A/c
|
25,000
|
||||
(Goodwill written off between old Partners) | |||||
|
Mehta’s Capital A/c
|
Dr.
|
|
25,000
|
|
|
To Drawings A/c
|
|
|
|
25,000
|
|
(Drawings made by Mehta)
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
|
Dr.
|
|
21,000
|
|
|
To Investment a/c
|
|
|
|
21,000
|
|
(Investment Sold)
|
.
|
|
|
|
|
|
|
|
|
|
|
Mehta’s Capital A/c
|
Dr.
|
|
5,000
|
|
|
To P&L suspense A/c
|
|
|
|
5,000
|
|
(Loss debited to Partner’s Capital A/c)
|
|
|
|
|
|
|
|
|
|
|
|
Mehta’s Capital A/c
|
Dr
|
|
5,000
|
|
|
To Loan to Mehta A/c
|
|
|
|
5,000
|
|
( Loan given to Mehta deducted from his Capital A/c)
|
|
|
|
|
|
|
|
|
|
|
|
Mehta’s Capital A/c
|
Dr.
|
|
1,24,000
|
|
|
To Mehta’s Executors A/c
|
|
|
|
1,00,000
|
|
To Bank A/c
|
|
|
|
24,000
|
|
(Final Settlement made)
|
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||||||||
Dr. |
|
Cr. |
|||||||||||
Particulars |
Khanna |
Seth |
Mehta |
Particulars |
Khanna |
Seth |
Mehta |
||||||
Profit and Loss A/c |
1,87,500 |
1,12,500 |
75,000 |
Balance b/d |
3,37,500 |
2,37,500 |
1,85,000 |
||||||
Mehta’s Capital A/c |
21,875 |
13,125 |
|
Revaluation |
37,500 |
22,500 |
15,000 |
||||||
Drawings |
|
|
25,000 |
Workmen Compensation Reserve A/c |
3,750 |
2,250 |
1,500 |
||||||
Advertisement Suspense |
2,500 |
1,500 |
1,000 |
Khanna’s Capital A/c |
|
|
21,875 |
||||||
Goodwill |
12,500 |
7,500 |
5,000 |
Seth’s Capital A/c |
|
|
13,125 |
||||||
Loan to Mehta |
|
|
5,000 |
Investment Fluctuation Reserve A/c |
8,750 |
5,250 |
3,500 |
||||||
Profit and Loss Suspense A/c |
|
|
5,000 |
|
|
|
|
||||||
Mehta’s Executors a/c |
|
|
1,24,000 |
|
|
|
|
||||||
Balance c/d |
1,63,125 |
1,32,875 |
|
|
|
|
|
||||||
|
3,87,500 |
2,67,500 |
2,40,000 |
|
3,87,500 |
2,67,500 |
2,40,000 |
||||||
|
|
|
|
|
|
|
|
Balance Sheet as on Aug, 01 2017
|
|||||||||||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||||||||||
|
|
|
|
||||||||||
Creditors
|
1,33,900
|
Debtors
|
62,000
|
|
|||||||||
Outstanding Expenses
|
5,000
|
Less: Provision for D/D
|
3,100
|
58,900
|
|||||||||
Profit and Loss Suspense A/c
|
5,000
|
Stock
|
30,000
|
||||||||||
Employee Provident Fund
|
20,000
|
Bank
|
1,01,000
|
||||||||||
Workmen Compensation Reserve A/c
|
10,000
|
Patents
|
2,00,000
|
||||||||||
Mehta’s Executors A/c
|
1,00,000
|
Prepaid Insurance
|
5,000
|
||||||||||
Capital A/cs:
|
|
Machinery
|
1,75,000
|
||||||||||
Khanna
|
1,63,125
|
|
|
|
|||||||||
Seth
|
1,32,875
|
2,96,000
|
|
|
|||||||||
|
|
|
|
||||||||||
|
5,69,900
|
|
5,69,900
|
||||||||||
|
|
|
|
|
WN1: Calculation of Share of Goodwill:
WN3: Calculation of Bank Balance
Closing Bank Balance = 1,29,000 + 21,000 − 24,000− 25,000 = Rs 1,01,000
WN 4: Calculation of Interest to be paid to Executor of Mehta
2018: Feb 01
Interest =
2018: Aug 01
Interest =
2019: Feb 01
Interest =
2019: Aug 01
Interest =
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