Page 122 - AAAXII

Model Test Papers M.115

2. Calculation of Value of Investment:
Interest of ` 24,000 is received for full year on the investment @ 8% p.a.
So, Value of Investment = ` 24,000 × 100/8 = ` 3,00,000.
3. Depreciation on Sports Equipment can be calculated by preparing Sports Equipment Account as under:

Dr. SPORTS EQUIPMENT ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,80,000 By Depreciation A/c (Balancing Figure) 30,000
To Bank A/c (Purchase) 2,40,000 By Balance c/d 3,90,000
4,20,000 4,20,000

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

(i) Realisation A/c ...Dr. 19,000
To Sudha’s Capital A/c 19,000
(Being Sudha’s husband’s loan taken over by Sudha)
(ii) Bank A/c ...Dr. 7,500
To Realisation A/c 7,500
(Being the bad debt recovered)
(iii) Shiva’s Capital A/c ...Dr. 13,300
To Realisation A/c 13,300
(Being the investments taken over by Shiva)

(iv) Realisation A/c ...Dr. 9,100
To Bank A/c 9,100
(Being creditors of ` 10,000 paid at 9% discount)
(v) Realisation A/c ...Dr. 3,000
To Sudha’s Capital A/c 3,000
(Being the Realisation Expenses ` 3,200 born by Sudha while
she was allowed ` 3,000)
(vi) Sudha’s Capital A/c ...Dr. 6,000
Shiva’s Capital A/c ...Dr. 4,000
To Realisation A/c 10,000
(Being the loss on realisation transferred to Partners’
Capital Accounts)

15. Valuation of Goodwill:

` 72,000 + 1,80,000 + 2,04,000 + 2,28,000 – 84,000` ` ` `
Average Profit = 5
= ` 1,20,000

Goodwill = Average Profit × No. of Years’ Purchase
= ` 1,20,000 × 3 = ` 3,60,000.