Page 94 - MA-12

4.24 Double Entry Book Keeping (Section A)—ISC XII

3. Journal entry for Car given to B will be: ` `
B’s Capital A/c ...Dr. 3,59,900
To Car A/c 2,50,000
To Revaluation A/c 55,000
To Output CGST A/c 27,450
To Output SGST A/c 27,450
(Being Car given to B at ` 3,05,000 plus CGST and SGST)
4. Journal entry for Revaluation Expenses: ` `
Revaluation A/c ...Dr. 5,000
Input CGST A/c ...Dr. 450
Input SGST A/c ...Dr. 450
To Cash A/c 5,900
(Being Revaluation Expenses plus CGST an SGST paid)
5. Cash in Hand: ` `
Opening Balance 20,000
Less: Revaluation Expenses 5,000
Input CGST 450
Input SGST 450 5,900
14,100
6. Cash at Bank: `
Opening Balance 1,50,000
Add: Amount Brought by:
A 1,52,000
C 24,000
3,26,000
Less: Paid to B 42,050
2,83,950
Illustration 13.
X, Y and Z were partners in a partnership firm sharing profits in the ratio of 4 : 3 : 1.
Y died on 30th June, 2015. The firm’s profits for the past 5 years were:

Year 2010–11 2011–12 2012–13 2013–14 2014–15

Profit (`) 8,22,225 7,00,000 2,50,000 Loss: (50,000) 5,00,000
X and Z decided to share future profits in the ratio of 3 : 1. Goodwill is to be valued on
the basis of Y’s share of 2 year’s profits calculated on the average of 5 completed years’
profits immediately proceeding the year of death less 10%.

3 4 2
Solution: X’s Gain = − = ;
4 8 8
1 1 1
Z’s Gain = − = ;
4 8 8
2 1
Gaining Ratio of X and Z = : = 21: .
8 8