Page 346 - MA-12

Model Test Papers M.37

Working Notes:
1. Accounting Entries for Bad Debts:
Date Particulars L.F. Dr. (`) Cr. (`)
Bad Debts A/c ...Dr. 17,000
To Sundry Debtors A/c 17,000
Provision for Doubtful Debts A/c ...Dr. 10,000
Revaluation A/c ...Dr. 7,000
To Bad Debts A/c 17,000
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2. (i) Amal’s Share of Goodwill = ` 1,40,000 × = ` 40,000, which is contributed by Bimal and Kamal in their
gaining ratio. It is calculated as follows: 7
4 3 1 3 2 1
Bimal’s Gain = - = ; Kamal’s Gain = - =
7 7 7 7 7 7
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Gaining Ratio of Bimal and Kamal = : or 1 : 1.
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(ii) Thus, Bimal and Kamal will contribute for Amal’s share of goodwill = ` 40,000 × 1 = ` 20,000 each.
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3. Calculation of Proportionate Capital of the remaining partners in the new firm:
Total Capital of the firm before the retirement of Amal = ` 7,00,000, which is contributed by Bimal and Kamal
in their new profit-sharing ratio, i.e, 4 : 3. Thus,
4
Bimal’s Capital in the new firm = ` 7,00,000 × = ` 4,00,000;
7
3
Kamal’s Capital in the new firm = ` 7,00,000 × = ` 3,00,000.
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4. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,00,000 By Amal’s Capital A/c 50,000
To Bimal’s Capital A/c 1,05,000 By Balance c/d 2,65,000
To Kamal’s Capital A/c 1,10,000
3,15,000 3,15,000

8.
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Debtors 2,42,000 By Sundry Creditors 60,000
To Stock 78,000 By Loan from Mrs. Mohan 15,000
To Investment 1,70,000 By Provision for Doubtful Debts 12,000
To Fixed Assets 10,000 By Ram’s Capital A/c:
To Ram’s Capital A/c (Creditors) 60,000 Fixed Assets 8,000
To Sohan’s Capital A/c (Loan + Interest) 15,300 Debtors 1,72,000 1,80,000
To Ram’s Capital A/c (Remuneration) 2,700 By Mohan’s Capital A/c:
Stock 70,000
Investments 72,000 1,42,000
By Sohan’s Capital A/c (Investments) 80,000
By Bank A/c (Debtors) 21,000
By Loss on Realisation transferred to:
Ram’s Capital A/c 40,800
Mohan’s Capital A/c 13,600
Sohan’s Capital A/c 13,600 68,000
5,78,000 5,78,000