Page 95 - ISCDEBK-12

4.22 Double Entry Book Keeping (Section A)—ISC XII

Working Notes:
1. Gain/Sacrifice = New Share – Old Share
2 3 1 3 2 4
Sonu’s Gain = − = ; Zubin’s Gain = − =
5 10 10 5 10 10
Gaining Ratio = 1 : 4.
5
2. Hari’s Share of Goodwill = ` 80,000 × = ` 40,000 to be contributed by Sonu and Zubin in their gaining ratio.
10
3. Total Capital of the New Firm = Adjusted Capital of All Partners – Cash Available for Payment
Hari’s Adjusted Capital = ` 40,000 + ` 5,000 + ` 8,000 + ` 32,000 + ` 42,500 – ` 2,750 – ` 2,500 – ` 2,500
= ` 1,19,750.
Sonu’s Adjusted Capital = ` 62,000 + ` 3,000 + ` 25,500 – ` 1,650 – ` 1,500 – ` 1,500 – ` 8,000
= ` 77,850.
Zubin’s Adjusted Capital = ` 33,000 + ` 2,000 + ` 17,000 – ` 1,100 – ` 32,000 – ` 1,000 – ` 1,000
= ` 16,900.
Cash Available for Payment = ` 40,000 – ` 8,000 – ` 15,000 = ` 17,000
Total Capital of New Firm = ` 1,19,750 + ` 77,850 + ` 16,900 – ` 17,000 = ` 1,97,500
2
Sonu’s New Capital = ` 1,97,500 × = ` 79,000
5
3
Zubin’s New Capital = ` 1,97,500 × = ` 1,18,500.
5
4. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 40,000 By Creditors A/c 8,000
To Sonu’s Capital A/c 1,150 By Hari’s Capital A/c 1,19,750
To Zubin’s Capital A/c 1,01,600 By Balance c/d 15,000
1,42,750 1,42,750

Illustration 13.
Ansh, Vansh and Dev are in partnership sharing profits and losses in the ratio of 3 : 2 : 1.
BALANCE SHEET OF Ansh, Vansh AND Dev as at 31st March, 2019
Liabilities ` Assets `

Capital A/cs: Machinery at cost 50,000
Ansh 80,000 Less: Provision for Depreciation 8,000 42,000
Vansh 60,000 Furniture 1,000
Dev 40,000 1,80,000 Sundry Debtors 80,000
Reserve 24,000 Less: Provision for Doubtful Debts 3,000 77,000
Workmen Compensation Reserve 6,000 Stock 50,000
Sundry Creditors 60,000 Cash at Bank 1,00,000
2,70,000 2,70,000
On 30th June, 2019, Vansh retired and Ansh and Dev continued in partnership, sharing profits and losses
in the ratio of 3 : 2. It was agreed that the following adjustments were to be made in the Balance Sheet
as at 30th June, 2019:
(i) Machinery was to be revalued at ` 45,000.
(ii) Stock was to be reduced by 2%.