Page 164 - DEBKVOL-1

7.6 Double Entry Book Keeping—CBSE XII
Solution: JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

2018
April 1 X’s Capital A/c ...Dr. 8,000
Y’s Capital A/c ...Dr. 12,000
Z’s Capital A/c ...Dr. 4,000
To Goodwill A/c 24,000
(Existing goodwill written off)
April 1 X’s Capital A/c (` 3,60,000 × 8/30) ...Dr. 96,000
To Y’s Capital A/c (` 3,60,000 × 3/30) 36,000
To Z’s Capital A/c (` 3,60,000 × 5/30) 60,000
[Goodwill adjusted by debiting gaining partner (X for 8/30)
and crediting sacrificing partners (Y for 3/30) and (Z for 5/30)] (WN 1 and 2)
April 1 Land and Building A/c ...Dr. 50,000
To Revaluation A/c 50,000
(Increase in value of assets recorded)
April 1 Revaluation A/c ...Dr. 26,000
To Stock A/c 16,000
To Provision for Doubtful Debts A/c 10,000
(Decrease in value of assets and increase in provisions recorded)
April 1 Revaluation A/c ...Dr. 24,000
To X’s Capital A/c 8,000
To Y’s Capital A/c 12,000
To Z’s Capital A/c 4,000
(Transfer of gain (profit) on revaluation)
April 1 Workmen Compensation Reserve A/c ...Dr. 40,000
To Workmen Compensation Claim A/c 16,000
To X’s Capital A/c 8,000
To Y’s Capital A/c 12,000
To Z’s Capital A/c 4,000
(Transfer of workmen compensation reserve)
April 1 Investments Fluctuation Reserve A/c ...Dr. 20,000
To Investments A/c 8,000
To X’s Capital A/c 4,000
To Y’s Capital A/c 6,000
To Z’s Capital A/c 2,000
(Transfer of investment fluctuation Reserve)
April 1 X’s Capital A/c ...Dr. 8,000
Y’s Capital A/c ...Dr. 12,000
Z’s Capital A/c ...Dr. 4,000
To Advertisement Suspense A/c 24,000
(Transfer of balance of Advertisement Suspense Account)
April 1 Z’s Capital A/c ...Dr. 6,62,000
To Z’s Executors’ A/c 6,62,000
(Balance in Z’s capital transferred to Executors’ Account)
April 1 Z’s Executors’ A/c ...Dr. 3,31,000
To Bank A/c 3,31,000
(50% of amount due paid to Z’s executors)