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4.8 Double Entry Book Keeping—CBSE XII

BALANCE SHEET OF THE NEW FIRM
as at 1st April, 2018
Liabilities ` Assets `
Sundry Creditors 1,50,000 Cash in Hand 75,000
Salaries Payable 50,000 Cash at Bank 1,50,000
Supplier’s A/c (Computer) 25,000 Sundry Debtors 2,00,000
Capital A/cs: Less: Provision for Doubtful Debts 10,000 1,90,000
Jaspal 4,00,000 Stock 40,000
Apoorv 4,00,000 Land and Buildings 5,50,000
Ankit 2,00,000 10,00,000 Machinery 1,90,000
Current A/cs: Computers (` 1,75,000 + ` 25,000) 2,00,000
Jaspal 2,20,000 Furniture 50,000
Ankit 44,000 2,64,000 Current Account:
Apoorv 44,000
14,89,000 14,89,000

Working Notes:
1. Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Stock A/c 10,000 By Land and Buildings A/c 50,000
To Provision for Doubtful Debts A/c 10,000
To Machinery A/c 10,000
To Gain (Profit) transferred to:
Jaspal’s Capital A/c 10,000
Apoorv’s Capital A/c 6,000
Ankit’s Capital A/c 4,000 20,000
50,000 50,000

2. Calculation of Sacrifice/(Gain) of each Partner:
Jaspal Apoorv Ankit
Old Share 5/10 3/10 2/10
New Share 2/5 2/5 1/5
54- 34- 2 2-
Sacrifice/(Gain) = Old Share – New Share = = =
10 10 10
= 1/10 = –1/10 Nil
Sacrifice (Gain)
Value of Goodwill = ` 1,00,000
1
∴ Apoorv will compensate Jaspal = ` 1,00,000 × = ` 10,000.
10
3. Total capital of the new firm = ` 10,00,000
Profit-sharing Ratio = 2 : 2 : 1
∴ Capital of Jaspal, Apoorv and Ankit will be ` 4,00,000; ` 4,00,000 and ` 2,00,000 respectively.