Page 147 - DEBKVOL-1

6.14 Double Entry Book Keeping—CBSE XII
Solution: JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)

M’s Capital A/c ...Dr. 20,000
O’s Capital A/c ...Dr. 10,000
To N’s Capital A/c 30,000
(N’s share of goodwill debited to the account of gaining partners
in their gaining ratio)
Working Notes:
1. Calculation of M’s Gain to be debited:
As O’s Gain for 2/6 = ` 10,000
So, M’s Gain for 4/6 = ` 10,000 × 6/2 × 4/6 = ` 20,000.
2. Gaining Ratio between M and O is 4 : 2 or 2 : 1.
3. Calculation of Value of Firm’s Goodwill:
For 3/9th N’s Share of Goodwill = ` 30,000
So, total value of firm’s goodwill = ` 30,000 × 9/3 = ` 90,000.
Illustration 15.
Complete the missing figures in the Accounts and Balance Sheet:

Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Patents A/c 2,000 By Investments A/c 2,600
To Plant and Machinery A/c 5,000 By Loss transferred to:
To Provision for Doubtful Debts A/c 400 X’s Capital A/c ?
Y’s Capital A/c ?
Z’s Capital A/c ? ?
7,400 7,400

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X (`) Y (`) Z (`) Particulars X (`) Y (`) Z (`)

To Goodwill A/c 3,000 2,000 1,000 By Balance b/d 68,000 32,000 21,000
To Z’s Capital A/c ? ? By Workmen Compen-
(Goodwill) sation Reserve 4,500 3,000 1,500
To Revaluation A/c 2,400 1,600 800 By Investments
(Loss) Fluctuation Reserve 3,000 2,000 1,000
To Advertisement By X’s Capital A/c 3,000
Expenditure A/c 1,800 1,200 600 (Goodwill)
To Investments A/c 17,600 By Y’s Capital A/c 2,000
To Bank A/c 4,250 (Goodwill)
To Z’s Loan A/c ?
To Bills Payable A/c ?
To Balance c/d ? ?
75,500 37,000 28,500 75,500 37,000 28,500