Page 129 - MA12

Model Test Papers M.35

3. Journal Entries with respect to Goodwill:
` `
Bank A/c (60% of ` 90,000) ...Dr. 54,000
To Premium for Goodwill A/c 54,000
Premium for Goodwill A/c ...Dr. 54,000
To Deepika’s Capital A/c 36,000
To Rajshree’s Capital A/c 18,000
Anshu’s Current A/c (` 90,000 – ` 54,000) ...Dr. 36,000
To Deepika’s Capital A/c 24,000
To Rajshree’s Capital A/c 12,000

4. For Adjustment of Workmen Compensation Reserve and Investment Fluctuation Reserve:
`
Workmen Compensation Reserve = ` 10,000 – ` 5,000 (Claim) 5,000
Investment Fluctuation Reserve = ` 5,000 – (` 25,000 – ` 22,500) 2,500
7,500
Journal Entry with respect to Workmen Compensation Reserve and Investment Fluctuation Reserve:
` `
Anshu’s Current A/c (` 7,500 × 3/10) ...Dr. 2,250
To Deepika’s Current A/c (` 7,500 × 1/5) 1,500
To Rajshree’s Current A/c (` 7,500 × 1/10) 750
Note: For adjusting capital of Deepika, Rajshree and Anshu this adjustment is made through Partners’
Current Accounts.

5. Dr. PARTNERS’ CURRENT ACCOUNTS Cr.
Particulars Deepika (`) Rajshree (`) Anshu (`) Particulars Deepika (`) Rajshree (`) Anshu (`)
To Deepika’s Capital A/c ... ... 24,000 By Anshu’s Current A/c 1,500 750 ...
To Rajshree’s Capital A/c ... ... 12,000 By Balance c/d ... ... 38,250
To Deepika’s Current A/c ... ... 1,500
To Rajshree’s Current A/c ... ... 750
To Balance c/d 1,500 750 ...
1,500 750 38,250 1,500 750 38,250
6. Adjustment of Capital:
Total Capital of the Firm = ` 1,50,000 × 10/3 = ` 5,00,000
Thus, Deepika’s New Capital = ` 5,00,000 × 4/10 = ` 2,00,000;
Rajshree’s New Capital = ` 5,00,000 × 3/10 = ` 1,50,000; and
Anshu’s Capital = ` 1,50,000.
7. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,25,000 By Rajshree’s Capital A/c 10,000
To Bad Debts Recovered A/c 20,000 By Balance c/d 2,36,500
To Premium for Goodwill A/c 54,000
To Deepika’s Capital A/c 47,500
2,46,500 2,46,500