Page 116 - DEBKVOL-1

5.32 Double Entry Book Keeping—CBSE XII

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Annu (`) Mannu (`) Sonu (`) Particulars Annu (`) Mannu (`) Sonu (`)
To Cash A/c 41,080 85,720 ... By Balance b/d 1,19,000 1,12,000 ...
(Bal. Fig.) By General Reserve A/c 6,000 4,000 ...
To Balance c/d 1,12,000 56,000 56,000 By Revaluation A/c 18,480 12,320 ...
(WN 3) (Gain)
By Investments
Fluctuation Fund A/c 1,200 800 ...
(WN 1)
By Premium for
Goodwill A/c (WN 2) 8,400 12,600 ...
By Cash A/c (Capital) ... ... 56,000
1,53,080 1,41,720 56,000 1,53,080 1,41,720 56,000

BALANCE SHEET OF THE NEW FIRM as at 31st March, 2009
Liabilities ` Assets `

Creditors (` 56,000 – ` 9,800) 46,200 Cash in Hand (WN 4) 27,200
Capital A/cs: Debtors 42,000
Annu 1,12,000 Investments (Market Value) 19,000
Mannu 56,000 Building 98,000
Sonu 56,000 2,24,000 Plant and Machinery 84,000
2,70,200 2,70,200

Working Notes: ` `
1. Investments Fluctuation Fund A/c ...Dr. 4,000
To Investments A/c 2,000
To Annu’s Capital A/c 1,200
To Mannu’s Capital A/c 800
(Transfer of excess Investments Fluctuation Fund to Old Partners’
Capital Accounts in their old profit-sharing ratio)
2. Sonu’s share of Goodwill = ` 84,000 × 1/4 = ` 21,000, which is credited to Annu’s and Mannu’s Capital
Accounts in their sacrificing ratio.
Calculation of Sacrificing Ratio (Sacrifice = Old Share – New Share):
-
3 2 12 10 2 2 1 85 3
Annu’s Sacrifice = - = = ; Mannu’s Sacrifice = - = =
5 4 20 20 5 4 20 20
2 3
Sacrificing Ratio = : or 2 : 3.
20 20
Share of Annu in Goodwill = ` 21,000 × 2/5 = ` 8,400
Share of Mannu in Goodwill = ` 21,000 × 3/5 = ` 12,600.
3. Calculation of adjusted capital of Annu and Mannu on the basis of Sonu’s Capital:
Capitalof theNew Partner (Sonu)
Total Capital of the New Firm =
Share of Profit of theNew Partner
` 56,000 4
= = 56,000` ¥ = 2,24,000`
1/4 1
Thus, Annu’s Capital in New Firm = ` 2,24,000 × 2/4 = ` 1,12,000; and
Mannu’s Capital in New Firm = ` 2,24,000 × 1/4 = ` 56,000.