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M.138 An Aid to Accountancy—CBSE XII

(ii) Shyam’s Capital/Current A/c ...Dr. 80,000
To Arpit’s Capital A/c 40,000
To Harshit’s Capital A/c 40,000
(Being the adjustment of share of Shyam’s Goodwill) (WN)
Working Note: Calculation of Hidden Goodwill and Shyam’s Share:
Actual Capital of Arpit and Harshit (` 10,80,000 – ` 2,00,000) ` 8,80,000
Add: Shyam’s Capital ` 4,00,000
Total Capital ` 12,80,000
Total Capital of the firm based on Shyam’s Capital and share = ` 4,00,0000 × 4/1 = ` 16,00,000
Hidden Goodwill = ` 16,00,000 – ` 12,80,000 = ` 3,20,000.
Shyam’s Share = ` 3,20,000 × 1/4 = ` 80,000.
13. All the receipts mentioned in the given question are of capital nature. Hence, these
are capitalised and are shown in Balance Sheet as under:

BALANCE SHEET OF DELHI CRICKET CLUB
as on 31st March, 2018
Liabilities ` Assets `
Capital Fund Building in Progress 18,00,000
Opening Balance 25,00,000 Outstanding Subscription for Governor’s Party 12,500
Add: Transferred from Building Fund 18,00,000
Life Membership Fees 65,000 43,65,000
Building Fund
Opening Balance 5,00,000
Add: Donation Received 25,00,000
30,00,000
Less: Transfer to Capital Fund 18,00,000 12,00,000
Tournament Fund
Opening Balance 7,520
Add: Donation Received 36,800
Sale Proceeds of Tickets 20,000
64,320
Less: Expenses 60,400 3,920
Subscription for Governor’s Party 62,500
(` 50,000 + ` 12,500)

14. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2017
June 30 General Reserve A/c ...Dr. 30,000
(i) To X’s Capital A/c 12,000
To Y’s Capital A/c 12,000
To Z’s Capital A/c 6,000
(Being the General Reserve distributed)
(ii) X’s Capital A/c ...Dr. 32,000
Z’s Capital A/c ...Dr. 16,000
To Y’s Capital A/c 48,000
(Being the share of goodwill of Y adjusted in gaining ratio)