Page 128 - MA12

M.34 Management Accounting (Section B)—ISC XII

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Deepika (`) Rajshree (`) Anshu (`) Particulars Deepika (`) Rajshree (`) Anshu (`)

To Goodwill A/c 3,000 2,000 ... By Balance b/d 88,000 1,27,000 ...
To Advertisement By Anshu’s Loan A/c ... ... 1,50,000
Suspense A/c 3,000 2,000 ... By Premium for Goodwill A/c 36,000 18,000 ...
To Bank A/c (Bal. Fig.) ... 10,000 ... By Anshu’s Current A/c (WN 3) 24,000 12,000 ...
To Balance c/d (WN 6) 2,00,000 1,50,000 1,50,000 By Revaluation A/c (Profit) 10,500 7,000 ...
By Bank A/c (Bal. Fig.) 47,500 ... ...
2,06,000 1,64,000 1,50,000 2,06,000 1,64,000 1,50,000

BALANCE SHEET as at 1st April, 2020
Liabilities ` Assets `
Creditors 75,000 Building 55,000
Bank Overdraft 50,000 Furniture 1,12,500
Workmen Compensation Reserve 5,000 Investments 22,500
Investment Fluctuation Reserve 2,500 Debtors 50,000
Employees’ Provident Fund 5,000 Less: Provision for Doubtful Debts 2,500 47,500
Workmen Compensation Claim 5,000 Stock (` 1,50,000 – ` 22,500) 1,27,500
Current A/cs: Bank Balance (WN 7) 2,36,500
Deepika 1,500 Accrued Income 5,000
Rajshree 750 2,250 Anshu’s Current A/c 38,250
Capital A/cs:
Deepika 2,00,000
Rajshree 1,50,000
Anshu 1,50,000 5,00,000
6,44,750 6,44,750

Working Notes:
1. Calculation Sacrificing Ratio and New Ratio:
New Share = Old Share – Share surrendered
Deepika’s New Share = 3/5 – (1/3 × 3/5) = 3/5 – 1/5 = 2/5 or 4/10
Rajshree’s New Share = 2/5 – 1/10 = (4 – 1)/10 = 3/10
Anshu’s Share = 1/5 + 1/10 = (2 + 1)/10 = 3/10
Thus, New Profit-sharing Ratio of Deepika, Rajshree and Anshu = 4/10 : 3/10 : 3/10 = 4 : 3 : 3;
Sacrificing Ratio of Deepika and Rajshree = 1/5 : 1/10 = 2 : 1.
2. Calculation of Anshu’s Share of Goodwill:
` 2,40,000 + 4,65,000 + 6,90,000` `
Average Profit = = ` 4,65,000
3
Normal Profit = ` 3,15,000
Super Profit = Average Profit – Normal Profit = ` 4,65,000 – ` 3,15,000 = ` 1,50,000
Firm’s Goodwill = Super Profit × No. of years’ purchase = ` 1,50,000 × 2 = ` 3,00,000
Anshu’s Share of Goodwill = ` 3,00,000 × 3/10 = ` 90,000.