Page 322 - MA-12

Model Test Papers M.13

Rose’s Capital A/c ...Dr. 27,075
Daisy’s Capital A/c ...Dr. 16,245
Lily’s Capital A/c ...Dr. 10,830
To Revaluation A/c (WN 2) 54,150
(Being the loss on revaluation transferred to Partners’ Capital Accounts
in their old ratio)
Daisy’s Capital A/c (` 1,50,000 × 1/5) ...Dr. 30,000
Lily’s Capital A/c (` 1,50,000 × 4/5) ...Dr. 1,20,000
To Rose’s Capital A/c (WN 3) 1,50,000
(Being the Rose’s share of goodwill adjusted)
Rose’s Capital A/c ...Dr. 2,75,425
To Rose’s Loan A/c (WN 4) 2,75,425
(Being the net amount due to Rose transferred to her Loan Account)

Working Notes:
1. Dr. PROVISION FOR DOUBTFUL DEBTS ACCOUNT Cr.
Particulars ` Particulars `

To Bad Debts A/c 2,000 By Balance b/d 5,000
To Revaluation A/c (Balancing Figure) 850
To Balance c/d (Required) 2,150
[5% (` 45,000 – ` 2,000)]
5,000 5,000

2. Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Patents A/c 30,000 By Provision for Doubtful Debts A/c (WN 1) 850
To Stock A/c 2,500 By Loss on Revaluation transferred to:
To Machinery A/c 7,500 Rose’s Capital A/c 27,075
To Building A/c 5,000 Daisy’s Capital A/c 16,245
To Creditor’s A/c 10,000 Lily’s Capital A/c 10,830 54,150
55,000 55,000

3. Adjustment of Goodwill:
Daisy’s Gaining Share = 2/5 (New Share) –3/10 (Old Share) = 1/10; Lily’s Gain = 3/5 – 2/10 = 4/10. Gaining Ratio = 1 : 4;
Rose’s Share of Goodwill = ` 3,00,000 × 5/10 = ` 1,50,000, which is contributed by Daisy and Lily in their gaining
ratio, i.e., 1 : 4.

4. Dr. ROSE’S CAPITAL ACCOUNT Cr.
Particulars ` Particulars `
To Profit and Loss A/c 12,500 By Balance b/d 1,50,000
To Revaluation A/c (Loss) 27,075 By General Reserve A/c 15,000
To Rose’s Loan A/c (Balancing Figure) 2,75,425 By Daisy’s Capital A/c 30,000
By Lily’s Capital A/c 1,20,000
3,15,000 3,15,000