Page 145 - MA12

Model Test Papers M.51

Dr. PROFIT AND LOSS APPROPRIATION ACCOUNT for the year ending 31st March, 2020 Cr.
Particulars ` Particulars `
To Vrindan’s Capital A/c (2/4 × ` 1,52,000) 76,000 By Profit and Loss A/c (Net Profit) 1,52,000
Less: Deficiency met (2/3 × ` 12,000) 8,000 68,000
To Kundan’s Capital A/c (1/4 × ` 1,52,000) 38,000
Less: Deficiency met (1/3 of ` 12,000) 4,000 34,000
To Srijan’s Capital A/c 38,000
Add: Deficiency met by:
Vrindan 8,000
Kundan 4,000 50,000
1,52,000 1,52,000
Working Notes:
1. Calculation of New Profit-sharing Ratio:
Let the total share be = 1, Srijan’s Share = 1/4, Remaining Share = 1 – 1/4 = 3/4
Vrindan’s New Share = 3/4 × 2/3 = 2/4; Kundan’s New Share = 3/4 × 1/3 = 1/4
Thus, New Profit-Sharing Ratio of Vrindan, Kundan and Srijan = 2/4 : 1/4 : 1/4 or 2 : 1 : 1.
2. Srijan’s actual share of profit = ` 1,52,000 × 1/4 = ` 38,000.
3. Deficiency = Guaranteed Amount of Profit – Actual Share of Profit
= ` 50,000 – ` 38,000 = ` 12,000.
4. Deficiency is to be borne by Vrindan and Kundan in the ratio of 2 : 1 as follows:
Vrindan’s contribution = ` 12,000 × 2/3 = ` 8,000; Kundan’s contribution = ` 12,000 × 1/3 = ` 4,000.

3.
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Investment A/c 5,000 By Accrued Income A/c 500
To Gain (Profit) transferred to: By Bad Debts Recovered A/c (WN 1) 5,800
Madan’s Capital A/c 6,780 By Unexpired Insurance A/c 5,000
Mohan’s Capital A/c 4,520 11,300 By Patents A/c 5,000
16,300 16,300

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Madan Mohan Gopal Particulars Madan Mohan Gopal
` ` ` ` ` `
To Goodwill A/c 18,000 12,000 ... By Balance b/d 60,000 40,000 ...
To Balance c/d 99,780 66,520 41,575 By General Reserve A/c 30,000 20,000 ...
By Revaluation A/c 6,780 4,520 ...
By Workmen Comp.
Reserve A/c (WN 2) 6,000 4,000 ...
By Premium for
Goodwill A/c* 15,000 10,000 ...
By Bank A/c (WN 3) ... ... 41,575
1,17,780 78,520 41,575 1,17,780 78,520 41,575
*Gopal’s Share of Goodwill = 1/5 of ` 1,25,000 = ` 25,000.